How to Benefit from Refinance
- 1). Evaluate your credit standing before your start the refinancing process. Order credit reports from the three credit reporting agencies, such as Equifax, TransUnion and Experian. Understand the reasons and rationale behind the score. If there are any discrepancies in the report, dispute these with the credit reporting agencies. Mention the reasons why you disagree. Provide documentary facts for the same. The agency would look into your claim and if it feels it is justified; the agency would rework your credit score.
- 2). Assess the current market value of your house. The property value may have appreciated considerably since the mortgage was obtained. Now, with this mortgage, you may able to get the money tied up in the house. Also, compare your present credit score with your score at the time the initial mortgage was obtained. If there is an improvement in the credit score, you would get the refinance at lower rates of interest.
- 3). Shop around and evaluate the deals offered by different lenders in the market. Contrast every deal with the other. Compare the rates of interest on the refinance, the tenure and the amount of the loan. Fix on the best refinance deal. Compare this deal with your existing mortgage. This way, you would be able to assess if you are likely to benefit from the refinance. Also, you would get an idea on the quantum and magnitude of benefits.
- 4). Approach your chosen refinance lender. Complete all the paperwork and obtain the refinance check from them. With this money first close the previous mortgage. The remaining money is yours.
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