Credit Sesame recently conducted an analysis of user data to determine that homeowners who would qualify for a home refinance would save an average of $5,773 each year by lowering their mortgage payments. That is a savings of nearly $60,000 over the course of 10 years.

However, even with substantial savings and near record low interest rates, many consumers are reluctant to refinance. There are several common misconceptions in general that are preventing homeowners from refinancing.

Many borrowers believe that they have to have perfect credit in order to qualify for a refinance. While, lending standards are tight, you do not necessarily have to have perfect credit in order to refinance. Many borrowers that have less-than-perfect credit are still able to refinance and lower their current interest rate.

Employment is also a big issue when it comes to refinancing. Many Americans have faced times of unemployment and believe they are not eligible to lower their interest rate because of that. However, lenders only look at your past two years of employment history. Any gaps prior to the last two years are irrelevant. Many also fear that if they are self-employed they will be unable to qualify. In reality, self-employment will likely require more paperwork, but you can still qualify for a refinance.

Many borrowers believe that if they have previously been denied from a refinance that they will not be able to qualify again. However, underwriting guideline vary from lender-to-lender, so if you have been denied by one lender it does not mean you cannot qualify with another lender. If you have a difficult file, you might have to speak with several lenders before you find one that will be able to qualify you for a refinance.

Prospect Financial Group, Inc. can help you get qualified to refinance your home loan. Call us today at 858-605-0952 to get started!