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Right now, one of the issues with refinancing and first mortgage financing is that it is hard to get approved. Mortgage applications are way up, but approvals aren't making that much headway. And those who do get approved are finding that they are not enjoying the mortgage rate they had hoped for.

Mortgage interest rates at multi-year lows

Mortgage interest rates are at multi-year lows — in some cases as low as 4.5%. Many mortgage lenders are advertising a low mortgage rate, but it is important to realize that is the best rate. Not everyone gets that low rate. In order to get that best rate, you will likely need the following:

Credit score of at least 740 or 750. of at least 740 or 750. * 80% loan to value ratio (for refinancing). * At least 5% to 10% (some mortgage lenders asking 15% or 20%) down payment for first time mortgage financing.

Approval isn't as onerous; you likely only need a credit score of 680 and a 3% to 5% down payment, along with adequate income. However, if you meet only the minimum, you probably will not get the best mortgage rate.

Even so, mortgage interest rates are low enough to make it worth your while — if you can get approved.

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