Tweet
That’s a pretty common dilemma for homeowners considering a refinance.
Improving your credit score can definitely help you qualify for better rates and terms. Even a small bump in your score can sometimes make a noticeable difference in the interest rate you’re offered. Paying down credit card balances and correcting any errors on your report can help fairly quickly.
On the other hand, mortgage rates can change, and there’s always the possibility they could increase while you’re waiting. Because of that, many borrowers compare the potential benefit of a higher credit score with the risk of higher rates in the future.
At Dream Home Mortgage, we usually recommend running both scenarios—refinancing now and refinancing after a few months of credit improvement. Seeing the numbers side by side often makes the decision much clearer.
Improving your credit score can definitely help you qualify for better rates and terms. Even a small bump in your score can sometimes make a noticeable difference in the interest rate you’re offered. Paying down credit card balances and correcting any errors on your report can help fairly quickly.
On the other hand, mortgage rates can change, and there’s always the possibility they could increase while you’re waiting. Because of that, many borrowers compare the potential benefit of a higher credit score with the risk of higher rates in the future.
At Dream Home Mortgage, we usually recommend running both scenarios—refinancing now and refinancing after a few months of credit improvement. Seeing the numbers side by side often makes the decision much clearer.
