Your 748 Credit Score Comparison

Your fico credit score of (748) would qualify you for a refinance national average interest rate of (5.89%) as of April 4, 2008. This would result in a monthly mortgage payment of ($ 1,734) for a mortgage with 1.0 points and an 80% Loan-to-Value Ratio for a single family, owner occupied property. Based on a 30 year fixed rate mortgage refi with a $300,000 loan amount.

Use the credit tier to grade your credit. This will give you a better idea of where you stand when you request a current refinance rate quote.

Keep in mind that your “Mid” fico credit score is the one used for refinance mortgage qualification. For instance, if your Transunion credit score is a 828, Equifax score is a 788, and your Experian score is a 768, then your qualifying credit score would be a 788.

See How Your Credit Score Stacks Up

The table below illustrates the powerful impact that credit scores have on an individual’s qualifying interest rate. As one’s credit score falls through the credit tiers, it can result in “tens to hundreds of thousands of dollars” in additional paid interest over the term of a 30 year mortgage!

National average interest rates reporting as of April 4, 2008

The figures listed in the table above are based on a 30-year fixed rate mortgage with a $300,000 loan amount. For scores above 620, these APRs assume a mortgage with 1.0 points and 80% Loan-to-Value Ratio. For scores below 620, these APRs assume a mortgage with 0 points and 60 to 80% Loan-to-Value Ratio. Also assumes mortgage is for a single family, owner-occupied property.

Is There Really a Big Difference in Rates Between Lenders For the Exact Same Qualified Refinance Scenario?

Simply put... YES!! A number of factors go in to the rate that you are ultimately quoted for your refinance. Overhead, marketing,use of (or lack of) technology, bank and investor alignment, direct or broker lender status, business strategy, volume, and mark-up, among others. This is not to mention closing costs, which vary widely among lenders. There is a difference and you can save thousands by choosing the right lender.

The table above reflects the "National Average" interest rates for April 4, 2008. Keep in mind that there are lenders which can do much better than the rates listed above, and those who will do much worse. Of course you want to work with the better lenders, because after all, you deserve the best!

My Credit is Good to Excellent. What is my
Best Refinance Option?

A good to excellent credit score will qualify you for the greatest number of refinance program options at the very best rates offered. Simply put, you should get the best refinance program from a broker with access to multiple investors competing against one another for your business. A broker that utilizes software to pull all current competing lender programs offered for your qualifying loan scenario, will give you a distinct advantage. Add "Direct Lender" status with low negotiated guaranteed closing costs, and you will have a winning combination for the lowest rate and fee refinance loan.

The Refinance ToolBox only works with home loan lenders that meet all the previous criteria, and are available to you, should you decide to get a Free Rate Quote with us.

My Credit is Not Perfect. Can I Still Refinance?

We understand that everyone's credit is not perfect. In many cases, credit scores are affected by reasons beyond your control. Maybe you have had emergency expenses, sudden medical bills, increased tuition, and on and on. These unforeseen bills may be causing you to miss payments and make your credit score fall. The Refinance Tool-Box would like to help those with falling credit scores to get a refinance loan that will help the situation immediately and also to make sense for the future. We can help you with your refinance and qualify you for the very best rates on the market.

Those with poor credit scores can get low mortgage rates with a FHA refinance. In fact, those that qualify may receive lower mortgage rates than a comparable excellent credit qualified conventional refinance mortgage!

Check Out FHA Refinance Mortgage Program