With everything that’s been going on lately, interest rates have dropped dramatically. For some homeowners it is the perfect time to refinance their home mortgage. Does refinancing make sense for you and your family? There are two critical things to educate yourself about when considering a refinance.

FICO Scores

Will your FICO scores help you qualify for the best rates currently being offered? The good news is that there are a lot of options for securing great rates, even if your FICO scores aren’t the best. Of course, the best rates are usually offered to those with great credit…but there are a lot of really good rates for those with average credit. Given the state of the economy, these are often lower than they were even a year ago.

Mortgage Rates vs. Prime Rates

At Alterna Mortgage, we will help you to understand the difference between the “prime rate” you often see advertised and your “mortgage rate”. The “prime rate” is based on the federal funds rate which is the interest rate banks charge other banks. The “mortgage rate” is the interest rate a lender charges a home buyer. This is the rate you will pay when refinancing.

Have questions? Feel free to reach out to Scott Bennett at 503-703-4699 or scott@altmo.com to talk about your current situation.