- 1). Determine your credit rating and take steps to improve it. Order your credit report from each of the three major credit bureaus (TransUnion, Equifax and Experian). Pay your bills and make loan payments on time. Catch up on any late or delinquent payments. Do what you can to improve your debt-to-income ratio. Any improvement on your credit rating will gain you access to better interest rates for mortgage refinancing.
- 2). Look for mortgage refinancing loans available from other companies. Print out offers from various companies, and make copies of them that you will be able to bring to show to loan officers when you are negotiating for lower rates later on. Document your income as extensively as you can and develop a legible household budget to show to lenders.
- 3). Apply for refinancing loans from multiple lenders. Applying for a loan will slightly damage your credit rating for a short period, but this is offset by the benefit of comparing loan rates and fees from multiple lenders.
- 4). Negotiate the best refinancing deal that you can get. When you meet with loan officers, bring documentation of your income such as pay stubs and tax returns, along with your monthly budget demonstrating your ability to make your mortgage payments on time. If you can offer a substantial down payment on the refinancing, you should be able to lock in a lower interest rate.
- 5). Review all refinancing agreements carefully. Look for hidden fees and closing costs that may increase the overall cost of a refinancing loan. If you are only planning to own the house for a short period of time, consider looking for no closing cost mortgages, which have no closing fees but a slightly higher interest rate.
- 6). Sign the refinancing agreement when you are confident you have found the best deal available to you. This will allow you to change your mortgage company and save money simultaneously.
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