A 700 Credit Rating isn't Good Enough When Refinancing your Home Loan

With mortgage rates plummeting, homeowners are flocking to lenders with hopes of refinancing their home loans at a lower interest rate and saving loads of cash in the process. On a $250,000 30 year loan, refinancing from an 8 interest rate to the record lows in the 5 range that were reported in early 2009 would lower monthly payments by nearly $500. Over the course of the entire loan, this would amount to over $170,000 in savings.

Most people, however, will not even be able to qualify for a refinance loan and an even larger percentage will not be able to get approved for the best interest rates.

Having a better than average credit rating simply isn't good enough when it comes to getting approved for the best rates on a refinancing loan. Most people consider a 720 credit score to be a good score, says Chris Freemott, president of All American Mortgage, but to get the best possible interest rates on their loan, borrowers will need a credit rating of 740 or better.

For years, consumers looking to increase their credit score have been trying to find for a way to turn a poor credit score into an average credit score or better. By taking credit scores below the 560 mark that many consider to be the cutoff for bad credit and increasing them to 600, 700, or higher, people found they were able to significantly improve their quality of life. They were able to get approved for home loans that were previously denied to them and qualify for loans and credit cards with sensible and manageable interest rates.

Today, a shift has been made where it is not just those with low credit who could benefit from credit repair or other credit improvement services. As is evidenced by the current home loan situation, even those with good credit scores may be able to benefit from pushing their credit scores even higher.

For those homepwners who are looking to take advantage of the low interest rates, take some time to investigate a variety of lenders and shop around for the best rates. And don't get discouraged if you get rejected by one lender because there may still be another who will be happy to help you. And if lenders are consistently rejecting your application or not offering the rates you are looking for because of your credit rating, then making use of credit repair services like those provided by Lexington Law may be the first step you need to take in order to accomplish your goals.

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There are steps you can take to fix a bad credit rating. To find out if credit repair may be a good solution for you, Lexington Law offers a free, personalized credit consultation. You can receive your consultation by calling 1-800-214-0922.

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