subject: Az Refinance And Your Credit Score [print this page] Imagine this scenario: You have an existing mortgage with a financial institution and the mortgage is back breaking because you are shelling out a relative fortune every month towards its repayment. This means that you are paying out of your savings and since you have to pay the financial institution a large sum towards interest, you are losing out on a lot of money.
This money could have been invested otherwise. How do you get out of this situation? Get a refinance at a relatively lower interest rate and softer terms and conditions and pay back your existing mortgage. AZ refi enables you to precisely do this. Obtain a loan from AZ refi and pay back the old mortgage. Now pay back the loan to AZ refinance at lower interest rates and get to save more money than you did earlier.
This sounds pretty simple and straightforward. But it is not. You have got to fulfill certain terms and conditions and satisfy certain criteria before you qualify for an AZ refi.
AZ refinance would not award a loan to an individual who has got a low credit score. Just like any other bank, AZ mortgage must satisfy itself that the loan is going in safe and hands and will be repaid with all terms and conditions satisfied. That is the reason Credit score, or your past record at repayment of loans is examined.
There is no doubt however, that the refinance scheme of AZ is immensely helpful. The main feature of this scheme is that it is focused on refinancing. The people who have devised this scheme have specifically targeted people who want to take a refinance in order to pay off their existing mortgage.
Since the interest rates of this refinance scheme is lower than other typical mortgage schemes, the customer is the beneficiary because of higher savings. The customer pays off the old and expensive mortgage and saves a lot of money because of lower repayment amounts annually.
However, it is critical that you ensure that your credit scores are impeccable and credible enough for your case to merit attention. You must ensure that your loan repayment history with the former mortgage institution has been clean. In other words, refinance companies would not like to see records of loan defaults in refinance applications. Such applications are likely candidates for loan disqualification totally.
Even if you obtain a refinance, you should not really believe, without verification that the terms and conditions are necessarily better than those of the existing mortgage scheme. A refinance scheme is hence, always subject to verification and careful consideration on the part of the applicant before the loan is accepted.
