How can I get the lowest mortgage refinance rates?

Obtaining a low interest rate when refinancing

Mortgage refinance rates depend on several factors, some of which you have control over and some of which you don’t. One of the most influential factors is your credit score.

When you apply for a refinance loan the lender will pull a copy of your credit report and examine your history along with your credit score. If you have a high credit score, then you will typically be eligible for lower interest rates than someone with a lower credit score.

Lenders also scrutinize the amount of equity you have available in your home. Some lenders are not willing to refinance a home that does not have substantial equity, although applicants who fall into special categories (such as loans guaranteed by the Veteran’s Administration) may be able to refinance without substantial equity.

When you apply for a mortgage refinance you are securing an entirely new loan, so some lenders do look at the entire application when considering what interest rate to offer upon approval. This means that factors such as your debt-to-income ratio and your assets may sway the lender as to what interest rate to offer.

Some lenders offer one flat interest rate on refinances regardless of other factors, and these lenders do not offer varying interest rates based on creditworthiness, income, or the equity in the home.

The very best refinance rates are generally reserved for homeowners with good credit, abundant equity, and an appealing credit application.