How To Cinch A Refinance

by Suzy Q from Glen Allen, Virginia USA

Ask Kate: How To Cinch A Refinance - Credit! Hi Kate, In November 2007, we closed on our house. Because I was relocating to a new area to be with my new husband, I was not going to have any income, but we were putting a significant amount of money down, about 55 percent.

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In order to ascertain that we could make the payments but still be locked into a rate, we opted for a fixed rate, 10-year interest only loan. The payments would be affordable for the first 10 years, as we paid off the interest.

After that, the payments would jump as we paid off the principal. However, we planned to pay additional monies toward the principal during the loan to maintain a low monthly payment. Our APR was 6.675.

About a month ago, our mortgage broker called us (out of the blue) and suggested we refinance. He said he could get us a really good rate on a 30-year fixed loan.

We wanted to know the catch but there wasn't any. He checked our credit which turned out to be in the low 800s each and after a few perfunctory questions, we were set to refinance at 5.0 percent and an annual APR 5.18.

Why Your Credit Score Matters

My advice to anyone thinking of refinancing at any point: KEEP UP A GOOD CREDIT SCORE! And remain in contact with your mortgage broker. Keep him in the loop about your successes!

Even though my husband had been laid off from his job three months ago and had only been on his new job a month, his stable work history and continued good credit gave us the ability to refinance at a prevailing low rate. I still am not working (I prefer to think of myself as semi-retired) but it did not matter at all.

If you want to maintain good credit, don't extend yourselves financially and keep up a good relationship with your lender. Then refinancing should be fairly simple, even in this tight credit market. Suzy Q

Kate Answers: How To Cinch A Refinance - Credit

Hi Suzy, Thanks! Hi Suzy, Your refinancing advice is one of the best I have seen. The unique emphasis on keeping a mortgage broker apprised of successes makes this a Must Read for anyone contemplating a refinance this year.

I hope you'll come back to my website Get Your Best Mortgage Rate again in the future. So remember to bookmark Get Your Best Mortgage Rate to your favorites and visit often for up to date tips for buying a house, mortgage news and refinance advice.

You can also invite friends to comment on this page or create a page of their own like you did.

Best Wishes,

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