Your Finances

• Credit and finances have improved. If your credit score has improved since your last mortgage application, you may be able to reduce the interest rates on your loan by refinancing. You can also save by refinancing if other financial indicators such as your debt, income and savings have improved.
• Credit and finances are the same. If your credit score and financial situation have not changed since your first mortgage, you may or may not be able to save with a refinance. Look at recent interest rate changes and consider your reasons for refinancing before you apply.



• Credit and finances are worse. If you’ve missed payments, run up big credit card bills or otherwise stressed your credit, you may not qualify for a low enough interest rate for refinancing to make sense. Estimate what mortgage rates you could receive and consider your reasons for refinancing before you apply.
• Stripped equity. To get the best rates, you’ll need to keep your borrowing on your refinancing loan to less than 80% of the value of your home. Refinancing might not make sense if you’ve already borrowed 90% or more of your home’s value in mortgages and home equity loans.

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