Mortgage MattersThe interest rates on home loans dropped to record lows a couple of years ago, but the rate has risen since then. Nonetheless, mortgage rates are still favorable for many homeowners if they act now.

Here are some things you have to know if you are considering to refinance for your home in Apple Valley:

Good credit

You need to have good credit to apply for a conventional refinance. That means you have been paying your mortgage regularly and on time; in short, you have no history of bad debt. On average, people that have successfully applied for refinancing had a FICO score of 727. You can still qualify for a loan with non-traditional lenders, but the lowest rates are from conventional sources.


Generally, you need at least 20% of your principal loan paid up before you can qualify for refinancing. The average equity help for those who applied successfully for refinance is 31%. There are exceptions, of course. The rule of thumb is, the more equity you have, the better your interest rates will be. It also means you pay less every month.

Fixed rates

If you have a long-term loan you took out before the rates started dropping, you are likely stuck with high interest rates. If you can reduce it by just one percentage point from your rate, that can make a big difference to what you pay in total. For example, if you have a 30-year fixed loan at 5.6% interest a year, you might think you already have a good deal. However, you can pay about $110 for every $100,000 of your mortgage every month.

Jumbo payments

If you can afford jumbo payments, and you have a 30-year mortgage, you are definitely in the market for refinancing. The rates for these are good right now.

The interest rates for new mortgages and refinancing are still good for most homeowners today. Nonetheless, you have to decide if your circumstances make it practical to apply for one at this time. Make sure you choose a mortgage broker than can give you the best deal.