Refinancing after recovering from dings on your credit allows you to enjoy the most competitive rates.

There are lots of reasons to refinance today

Recovering from poor or bad credit

Did you have poor credit in the past? Another big group of potential refinancers consists of people who had problems with their credit when they bought their homes a few years ago, and have cleaned up their act and raised their credit scores since then. They may have a rate of 8 to 11 percent, depending on just how bad their credit was.  If you had credit problems in the past and have a mortgage rate that is higher than the going rate, you should consider refinancing that loan.  The amount of money you would save is phenominal!

At First Equity, we have found that it often makes financial sense for someone with a poor credit history to go ahead and buy a house, then pay all bills on time for three years. After two years, they should have their credit in shape and should go ahead and do an orderly refinance at the prevailing rate for borrowers with good credit. They can get 30-year loans but ask their loan officer to put them on schedule to pay off the loans in 27 years. Now they have re-established their good credit rating, and, in most cases, will have a mortgage at the same rates as if they had never had any credit problems.

Is it time for me to refinance?

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