KYW Consumer Report: Mortgage Refinancing
by CBS3's Jim Donovan for KYW Newsradio --
Falling mortgage rates have pushed refinancing of home loans to the highest level since May of last year. But qualifying for a lower rate isn't always easy.
These days, many banks are looking for credit scores of 720 or better in order for you to be eligible for the lowest rates.
On top of that, the equity and value of your home will be looked at closely.
If you owe what your house is currently worth, or you're "under water" on your loan -- meaning you owe even more than it's worth -- you aren't likely going to be considered a good candidate for refinancing.
And income requirements have been tightened, too. Many banks now won't offer to refinance a loan if your new payment is going to be more than thirty percent of your monthly income.
