When the current mortgage interest rates are low it’s tempting to refinance. For most people this is the time to get the lowest mortgage rates. And everyone knows that the lowest mortgage rates are the same as the best mortgage rates.
If you have bad credit, though, refinancing later might be a better idea. Mortgage interest rates are a function of your credit score too. So, if you have bad credit, the best thing to do often is to work on raising your credit scores.
If mortgage interest rates in the next few months are likely to be as low as the current mortgage rates and property values are not plummeting and you have bad credit history and scores, you’d be better putting off that mortgage refinancing.
Credit standing and, therefore, credit scores can move up significantly enough from a mortgage loan point of view in a relatively short time. If your credit scores are low because of reporting errors, a very short time. But even if they’re low because you’ve fallen behind with payments, a few months of on-time payments across will get the mortgage interest rates you’ll qualify for to be closer to the lowest advertised current mortgage interest rates.
The difference between a credit score of 550 and 579 doesn’t translate into mortgage interest rate benefits. But if you go only 1 point higher, to 580, you’ll feel the difference.
Mortgage lenders come in many sizes, but they tend to look at credit scores about the same. And they have different mortgage programs for different credit scores. For most of them, the cut-off point is written in stone, so being at the cutoff point means a lot in terms of will they lend to you and how much interest they’ll charge for your mortgage loan.
A credit score between 720-799 is considered great.
A credit score between 680-719 is considered good credit.
A credit score between 620-679 is considered okay by some creditors while others consider it bad.
A credit score between 580-619 is considered to be bad. You’re in the subprime mortgage lending now.
A credit score between 500-579 is considered to be ugly.
A credit score of 499 or less is considered to be very ugly.
So, if property values are stable and current interest rates are not likely to shoot up you’ll benefit more by postponing your bad credit remortgage or refinance and work on getting your credit scores up. That’s true even if the mortgage interest rates in a few months are going to be a bit higher than the current mortgage interest rates.
If the ‘current mortgage interest rates’ 6 months in the future are going to be 0.5% higher but your credit score in 6 months lets you borrow at 1% lower interest rate than you can now, you’re ahead, aren’t you?
If the current mortgage interest rates ARE going to shoot up, hurry and refinance; whatever mortgage interest rates you’re quoted in this case are the lowest mortgage interest rates you can get. These are your best mortgage rates.
Posted by Dan M. Kennedy 
Current Mortgage Interest Rates 