Refinancing a home mortgage is a huge decision. The fallout from the 2008 credit crisis was due in a large part to unsound home loans made to borrowers in precarious financial situations. Mortgage companies and banks have tightened their guidelines as a result. However, a few banks offer superior mortgage refinance products to qualified borrowers. Most of the best deals are only available to customers whose credit scores are excellent (above 720).
Bank of America
Bank of America is a massive banking conglomerate in the United States. If you have a credit score above 720, a debt-to-income ratio below 45 percent and a loan-to-value below 80 percent, you will qualify for its best rates.
To figure your debt-to-income ratio (DIR), simply divide your monthly expenses by your gross monthly income. To calculate your loan-to-value (LTV), divide your mortgage balance by the appraised value of your home. Bank of America also offers checking and savings accounts. If you choose to do your banking with Bank of America, they can automatically deduct your mortgage payment from your accounts.
Chase Manhattan is another massive banking company in the United States. Chase Manhattan has a long history of superior customer service and community support. If you have a FICO score above 720, a DIR below 45 percent, and an LTV below 80 percent (see above for definitions), you will get the best deals.
You will need to pay an origination fee to qualify. This percentage is charged as a percentage of the total loan amount (for example, 1.50 percent of $200,000 is $3,000).
US Bank is a national bank that is headquartered in the Northwest. With a FICO above 720, a DIR below 45 percent, and an LTV below 80 percent, you will qualify for the lowest rates. You will need to pay a discount fee and an origination fee to qualify.