Lower Your Interest Rates and Payments with a Refinance

The Benefits of Refinancing:

• Decrease your monthly payments or shorten the length of your loan (*although the total finance charges may be higher over the life of the loan)
• Use cash to pay off high interest credit card debt
• Combine a first mortgage with a home equity loan
• Take out cash to pay off student loans or other large expenses
• Switch into a fixed-rate mortgage to take advantage of historically low interest rates

Refinancing Requirements

When you refinance, there are three primary factors your lender will consider: your Debt-To-Income ratio (DTI), equity, and credit. Typically you should have a DTI less than 43%, at least 22% equity in your home, and a credit score above 680, although lender requirements vary.

If you don’t quite meet those requirements, you’re not out of luck. There are FHA options available for borrowers with a less than ideal profile. If you’re not sure which option is best for you, just contact us!