Debt Consolidation Credit Counseling In Phoenix

Because of the currently low interest rates, a mortgage refinance can be a good choice. However, because of the mortgage meltdowns recently, banks and lenders have pretty strict lending criteria, so it's not as easy as it used to be to get accepted.

If you go through the trouble to prepare for your mortgage refinance, you can vastly increase your chances of getting accepted by a lender. We will go over a few things in this article you need to know before getting a mortgage refinance.

Home prices are getting lower by the day. This, coupled with the increase in inventory on the housing market, lowers the amount of equity you have in your house. If you currently owe more than your home is worth, getting a mortgage refinance won't be easy. When an appraiser comes by, he will always make an appraisal of the value in today's housing market, not the housing market as it used to be.

There are plans to help homeowners that are in a negative equity situation. Details are not yet known, but will be revealed shortly.

A lender also wants to know your income. If the income is not sufficient to do a mortgage refinance, equity will come into play. If you have little equity, you will have trouble getting accepted for a mortgage refinance. On the Internet there are many sites that can tell you what you can approximately finance with your current income. Be sure to take a look before applying.

Before you get a mortgage refinance, they will have a look at your credit score. If it's really bad, you'll almost certainly get rejected. If you do get accepted, you will be paying more than the average person with an average credit. If at all possible, improve your credit score before applying for your refinance.

Always take note of the total costs of a mortgage refinance decision. You have to know upfront if the refinance is worth the trouble. There are some extra costs you will have to incur when doing a refinance. Make sure you will be able te recoup the costs.