A: Your debt–to–income ratio is the percentage of your monthly income that goes towards paying off debt. Lenders will use your debt–to–income ratio to determine your eligibility for refinancing and the interest rate you qualify for. A lower debt–to–income ratio will improve your chances of getting approved for a refinance with a favorable interest rate.
Conclusion
Refinancing your mortgage can be a smart financial move for many homeowners. By lowering your interest rate, consolidating debt, or accessing equity in your home, refinancing can help you save money, improve your cash flow, and achieve other financial goals.
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