Refinance in Illinois – how to get approved?

You are currently viewing Refinance in Illinois – how to get approved?
refinance in Illinois

Thinking about applying for a refinance in Illinois? Most people looking for refinancing would go for the 15-year mortgage rates as this has a shorter loan term, thus saving you thousands of dollars in interest. On the other hand, for homebuyers, the 30-year mortgage is a popular option because you get to pay lesser even if the term is longer.

Mortgage borrowers who will only stay in the home for a few years favor ARMs or adjustable-rate mortgages. They choose because they can make the most of the lower starting interest.

Refinance in Illinois rates

Regarding refinance in Illinois, rates may differ depending on a few factors. Some of these are:

  • Credit scores
  • Amount of downpayment
  • Loan amount

How good or bad are your credit scores? Good credit scores give you better rates and better terms overall. When it comes to credit scores, it will always be the higher, the better. So if you are looking to refinance in Illinois and your credit score is in the Fair, or Bad credit ranking, here’s what you need to do:

  1. Increase your credit score. Credit reports are free from the three credit bureaus. Please go through it and look for discrepancies. Once you see something that shouldn’t be there, file a dispute with the lender and have it fixed, it may not be reflected immediately, but at least you are starting the process. Another way to increase your credit score is to pay your debts on time and discipline yourself from incurring new obligations.
  2. Improve your home equity. More considerable home equity is vital as this proves the current market value of your property minus the attached liens to the property. As time goes by, and as you pay your mortgage, your home’s equity improves, and the value increases.
  3. Decrease your debt-to-income (DTI) ratio. When applying for a refinance in Illinois, your DTI will matter because this will show how much of your income goes to repaying your debts. If the percentage is low, lenders tend to view you in the “lower risk” category, meaning you can be given a better mortgage rate than those with higher DTI.

Send us word on how we can assist you when you apply for a refinance in Illinois.