5 Key Factors that Affect Mortgage Refinancing Rates in Calgary
When seeking to lower your interest rates, reduce monthly payments, consolidate debt or access equity, mortgage refinancing is a smart move for many Calgary homeowners. There are, however, several factors that influence the mortgage refinancing rates in Calgary , and understanding those can help you make informed decisions. Factors Affecting Mortgage Refinance Rates Calgary- Credit Score – Your credit score plays a key role in determining the interest rate lenders will offer when you refinance your mortgage. A higher credit score showcases you as an eligible borrower which can result in a lower rate. Before refinancing it is imperative to check your credit report for errors and pay off outstanding debts to improve your score. Loan-to –Value Ratio: The loan-to-value ratio compares the amount of the mortgage you are refinancing to the appraised value of your home. A lower loan-to-value ratio means you have more equity in your home, which reduces the risk of the lender an...