This week marks the start of the Refi Boom’s 7th month in California’s Inland Empire where rates have been falling since early-April 2010. Whether you’re looking to refinance or buy a home, however, know that not everyone will qualify for today’s low rates.
Mortgage approvals are primarily based on good income, good equity/down payment and strong credit, and, without all three, the best rates of the day remain out of reach. What can you do to help attain those rates? You can’t always ask for a raise and equity is a function of your down payment or home value, but you can do something about your credit score.
In this 4-minute segment from NBC’s The Today Show, you learn some credit basics to help propel your score higher:
- There’s no “quick fix” for credit. Time + Good Credit Behavior = Better FICOs.
- Pay every bill when it comes due. Even one late payment can damage your score.
- Don’t close old credit cards
Also among the segment’s advice is to stop worrying about whether rates have bottomed. Refinance today if it makes financial sense. Then, if, by chance, rates fall in the future, just refinance again. Don’t be greedy unless you like to gable and can accept missing out on the best mortgage rates in history.