WHAT ABOUT ME? MY CREDIT IS NOT SO GOOD

You want to refinance your mortgage with adverse credit. You have sub prime lenders who specialize in offering loans to people who have a high-risk credit history. These lenders charge higher credit rates and fees for the risks they are assuming. We are finding that not all sub prime lenders offer competitive rates. Some stack fees into the loan and charge excessively high interest rates, so it is still best to compare financing offers.

Compare

Interest rates can vary a couple of percentage points between lending companies. Over the lifetime of your loan that can cost you thousands of dollars in payments. Make sure when you compare that you give each lender the same information, it can make a difference in the interest rate that you will be charged. Also, if you had adverse credit when you purchased your home but you have been making monthly payments on time, this should affect the interest rate.

Search the net

Lender websites offer a convenient and competitive way to gather quotes. These lenders know they are in competition with one another and are out to offer you the best deals. Applications can also be completed right over the web.

Watch the fees

Make sure the fees are included in the initial price of the loan. Because of the adverse credit, you will pay some fees but they should not be excessive. Expect to pay higher points than most loans, but the comparison shopping should net you reasonable fees.

Know the terms

Once you have made a decision on the offer, make sure to read the terms, some lenders charge high fees for late or missed payments. The fees should not be enormous. The lending company should be able to answer any questions you may have and in this case you may want to ask quite a few questions.

Down Payment

Expect to pay a down payment usually between 5 % and 20%, if your credit score is less than 600. If your down payment is greater than the minimum, you will save more over the life of the loan. The more you can put down the lower your monthly payment will be.

No matter what our situation is, the reason we are refinancing is to get into a better financial position. Ultimately, if this is the case then I would say go ahead and refinance. If that is not the case, then it might be better to wait until you are in a better financial position, use
mortgage secrets exposed and bankruptcy mortgage deals as guides, this should help you negotiate a better interest rate, which in turn will generate lower monthly payments


Be informed.


Happy Surfing,