What credit score is needed to refinance a house?

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  • August 19, 2023 at 4:02 pm #11153
    Geoff Massanek
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    August 19, 2023 at 6:20 pm #11238
    Team StellarFi
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    Refinancing is essentially replacing your current loan terms with a new one with different (usually better) rates and terms like a lower interest or shorter loan period.

    The credit score needed to refinance your house depends on the type of loan you apply for. Each lender may have specific requirements. Your loan-to-value and debt-to-income ratio also influence the credit score you need when applying to refinance your home.

    A conventional loan requires a higher credit score when compared to other available loans. You need a FICO® score of 620 for a conventional loan as opposed to 580 for any of the government-insured loans such as a ​​Federal Housing Administration (FHA) or Veterans Affairs (VA) loan.

    You also need to have substantial home equity (how much of the home loan you’ve already paid off). A 20% equity is usually considered ideal. Lower than that, and the interest rates you pay will likely be higher.

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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