Is the Rate Reduction Guaranteed?
Current homeowners and borrowers may wonder if they are able to obtain a guaranteed rate reduction. Unfortunately no, a mortgage rate reduction is not guaranteed. Borrowers must qualify to become approved for a rate reduction. To qualify for a mortgage rate reduction, borrowers and homeowners must take certain steps, including the following:
- Renegotiate a new home loan interest rate with your current mortgage broker
- Boost your credit score
- Refinance your current home loan
- Request a mortgage rate review from your current mortgage broker
Before deciding to renegotiate a new home loan interest rate with your current mortgage broker, you should gather certain information, including your credit score, current financial status, current mortgage rates, current monthly mortgage repayment cost, home loan terms, home loan interest rate, and how your current interest rate stacks up against your mortgage brokers competition.
Boosting your credit score is a great way to increase your likelihood of becoming approved for a mortgage rate reduction. When a potential borrower applies for a mortgage with their broker, the broker will perform checks into the individual’s financial history and credit score to determine a borrower’s risk status.
An applicant with a high credit score is considered a low-risk borrower, while an applicant with a low credit score is considered a high-risk borrower. The same rule goes for attempting to obtain a lower mortgage rate, and boosting your credit score if it is on the lower end is a great way to increase your chances of approval.