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I am trying to refinance our home of $250K loan with a 613 credit score. Will I get good rates?

by timothycase959 from Andover, Virginia. Aug 20th 2015 Reply


Scott Kinne (Skinne)
#30 ranked lender in Virginia - 66 contributions

Good is a relative term, and a low credit score can affect rates differently depending on whether you or obtaining FHA or VA financing (which are more lenient on low scores) or Conventional financing. It would be best to talk with a professional lender who can assist you and discuss how to possibly raise your credit score higher to receive better rates. However, you don't want to wait too long in raising your scores as mortgage rates can move higher while you are trying to get better Credit Scores. Therefore, rates could get .25% worse and by raising your score you may receive .125% better pricing, so the net is by waiting your rate may go higher anyway! Hope this helps. Scott Kinne - VP - First Heritage Mortgage-- NMLS# 182351 - 703-293-6146.

Aug 20th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,917 contributions

Well the obvious answer is you wont get the best rates available with a low score.. in fact.. with a 613, depending on which loan product you intend on applying for, you might not get approved.. Much more info would be needed to properly answer your question. What is your home worth? If it's worth $200K and your trying to finance $250K, your probably going to get denied.. if your home is worth $500K and your trying to finance $250K or 50% Loan to Value, then that's a positive compensating factor, and would affect your rate. So, as you can see, without knowing your properties value, its difficult to say.. are you going FHA or Conventional? FHA has lower rates, but there's not a major difference in pricing for 600 borrowers vs 750 borrowers, but all FHA loans have monthly mortgage insurance regardless of your LTV.. so it might not be the best options.. again, so little info is given, that i'm having to guess your scenario. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Aug 20th 2015
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Jericho Cherry (Jerichocherry)
#58 ranked lender in Virginia - 1,107 contributions

As William stated, with that score,IF you get approved you won't get the BEST rate. I would suggest going to a Credit Repair Agency to see what needs to be done to increase your scores.

Aug 20th 2015
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Derick Condron (rightstartoregon)
#32 ranked lender in Oregon - 597 contributions

Those scores will limit your options and you will not be in the prime rate category for sure. I would talk with a local lender and ask if they have any ideas as what needs to be done to help repair your credit.

Aug 20th 2015
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