Being a homeowner doesn’t guarantee you can refinance or renew your mortgage. If your credit score is below 650, you probably won’t be able to refinance with most banks and financial institutions.
Another reason why a mortgage refinancing application may get rejected is low home equity, which is the value of your home minus your debt. You’ll usually need at least 25% equity to get your refinancing request approved. If you have recently lost your job or experienced reduced income, your application will be rejected unless your debt-to-income ratio is low.
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