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4 Important Questions To Ask Before Refinancing Your Mortgage.
So you are thinking of refinancing? Well you are in luck because I have 4 quick and important questions you should ask yourself before doing so.
1) Do I Have Enough Equity To Get A Mortgage?
To get a conventional loan, you will usually need to have at least 20 percent equity. This means that your house will have to be worth at least $250,000 to get a $200,000 loan.
If you have less equity, you could end up having to pay for private mortgage insurance, which can easily add $100 or more to your monthly payment.
2) How's My Credit?
Most lenders will look at your credit score as a part of determining whether or not to make you a loan. With conventional lenders, your rate will depend on your score and the higher it is, the lower your payment will be.
Other lenders, like the FHA and VA programs have an all or nothing rule. If you qualify, your rate won't be based on your credit, but if your score is too low, you won't be able to get any loan. Generally, 620 credit scores are the lowest that will qualify you for any loan.
3) What Do ... more
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