Debt-to-income ratio
Surprising as it might sound, the fact that you already have a mortgage does not mean that you can easily qualify for a refinance. Most lenders require you to maintain a healthy debt-to-income ratio in order to become eligible for a refinance option.
Generally, you should not spend more than 36% of your monthly paycheck on debt repayments. A higher debt-to-income ratio means you will have a hard time qualifying for a refinance and, even if you do, you are likely to be charged a higher rate of interest by most lenders.
