Bad credit refinancing » Bad Credit Mortgage Refinancing

Get Approved For a Bad Credit Mortgage Refinancing With Obama’s Stimulus

admin — Sun, 28 Mar 2010 13:23:56 +0000

Getting a mortgage refinancing or modification with bad credit is not as hard as it seems. Even with the bad housing market, and the huge number of homeowners at risk of losing their home, there is help. The “Making Home Affordable” plan is a mortgage stimulus from President Obama designed to assist homeowners. Millions of homeowners are qualified to use this plan for themselves. Here is how:

With over $75 billion in funding to help homeowners, there are a low of new options for refinancing or home loan modification, even for people with bad credit. Never before has such a comprehensive mortgage bailout plan been passed. However, never before have so many homeowners needed help to prevent losing their home. This plan gives a struggling homeowner a real chance to save money, or their home.

Getting approved for mortgage refinancing or modification is easier than ever. With this stimulus money being given to mortgage lenders and banks who help homeowners save their home and get a better mortgage, it is really easy to get an approval. This money will cover some of the financial risks a lender or bank takes on when approving at risk homeowners. Now though, with money coming in every time they help someone, they are more likely to approve more applications. This allows homeowners in bad financial situations, with bad mortgages, or bad credit to get the help they would have a hard time getting before this plan existed.

Bad credit mortgage refinancing and modification right now is a golden opportunity for cash strapped homeowners to save their home from being lost, or a whole lot of money every month. This plan allows more homeowners than ever to get the help they need. If you are at risk of losing your home, or are barely able to afford your monthly payments, get help now. The longer you wait, the harder it will be to save yourself.

By: Michael Petrone

Bad Credit Mortgage Refinancing – How Often Can You Refinance A Mortgage?

admin — Tue, 16 Mar 2010 02:25:30 +0000

You can refinance your mortgage as often as you want. Financing
companies are more than willing to process your loan application, reaping the benefits of closing costs. You, however, only want to refinance when
you can get a real benefit from the deal. Most often that means a lower
rate, but there other instances as well.

Benefits To Refinancing With Bad Credit

With poor credit you won’t be able to get the best available rates, but
you can get close. Most subprime lenders offer financing just 1% to 3%
above market rates. If you have had severe financial troubles in the
last 24 months, like a foreclosure or bankruptcy, expect rates to be much
higher.

So even with an adverse credit history, you may still be able to lower
your rates. The general rule is that if there is a rate difference of 2
or more points, then it’s worthwhile to refinance.

If you are struggling with cash flow issues, refinancing can help you
lower your monthly payments, freeing up needed cash. Lower rates will
reduce your payments, but so will extending the length of your loan.

Cashing out part of your equity during refinancing can help you secure
low rate financing, usually at half the rate of a credit card. With the
additional credit, you can consolidate bills or make needed home
repairs.

The Difference Is In The Lender

Selecting the right lender is just as important as getting the right
loan terms. Financing companies do not all charge the same rate on
mortgages. So you can save yourself hundreds, even thousands, by comparing
loan offers.

With online financial companies, you can request loan quotes without
hurting your credit score with repeated credit inquires. Based on the
information you provide, potential lenders send you a loan estimates in
minutes. With mortgage broker sites, you can receive multiple offers to
make side-by-side comparisons.

Applying online for refinancing can also qualify you for loan discounts
with some lenders. Just remember that any rate quoted isn’t guaranteed.
With rates fluctuating daily, your rate can only be locked in once your
application is approved.

By: L. Sampson

How to Easily Obtain Bad Credit Mortgage Refinancing

admin — Sat, 06 Mar 2010 06:28:34 +0000

The current credit crisis and weak economy have led to tighter reins on banking loan officers concerning who can qualify for loans. For most people with a credit score anywhere below perfect, the are not able to obtain a loan. However, there are some large exceptions to this rule. One of the most significant exceptions is that of the bad credit mortgage refinancing.

What is happening is that banks have been foreclosing on a lot of homes and finding that the only way to get them off the books is to take a huge loss when reselling them. In order to prevent this loss, many banks will gladly work with a homeowner who truly wants to avoid not repaying their mortgage loan.

Even though late payments and bad credit card debt may have lowered their credit scores below the normal threshold of acceptance, homeowners seeking to refinance their mortgage to take advantage of better interest rates and/or to extend their payment term to get lower payments will be considered based on their merits as customers of the individual banks rather than their credit scores.

A person with poor credit could be a better loan candidate if they voluntarily enter a credit counseling program. Finding ways to reduce debt without being forced to file bankruptcy will reflect very favorably on the applicant.

A bank will want to know what the applicant has planned for the money that will become available with the refinancing. Most times, if the money is going to be used to increase the value of the home through home improvements, or to pay of high interest lines of credit and make it easier for the applicant to pay back the money, a bank is more than happy to accept the loan application. Their view is that you are working to get out of debt even if it means temporarily taking on more debt at better terms.

Believe it or not, this could be the best time to attempt to get a bad credit mortgage refinancing loan. This is because banks are extremely nervous over bad debts that can not be collected. In many cases, they will go to extremes to ensure that the money they have loaned out is repaid, even if it means they have to refinance and wait a longer period of time before it is all collected. In all actually, refinancing allows them to collect more interest on the money they lent out, making it a win/win situation.

The two key points to consider in applying for bad credit mortgage refinancing is how the money will be used and how the borrower’s ability to repay will be improved.

Refinancing is usually done to benefit from a lower interest rate, get a lower payment and longer loan term, or have money to improve the home or pay off other outstanding debts that are making it difficult for the homeowner to pay their mortgage. If one can provide satisfactory answers to these questions, the odds are good that refinancing can be arranged despite a bad credit score.

By: Paul Van Rode

Bad Credit Mortgage Refinancing and Modification

admin — Wed, 24 Feb 2010 23:10:49 +0000

While getting approved for a mortgage refinancing or modification with bad credit may be hard, it is not impossible. These days there are plenty of mortgage lenders and banks who are happy to have you as a customer, but sometimes these come with a price. Homeowners with bad credit need to know what to do in order to ensure the best refinancing or home loan modification deal possible. Here are some things that can help you if your facing this situation:

- Homeowners with bad credit need to make sure that they compare different loan options, rates, terms, and conditions between different lenders and banks. Typically, you are going to pay a higher interest rate due to your bad credit, so saving as much as you can is a great way to maximize your benefits.

- Homeowners need to know what they want to get out of a refinancing or mortgage modification. Do you want lower payments? To shorten the length of the loan? Get cash back from the equity you have built up? Lock in a lower interest or fixed rate loan? All of these questions will effect the decisions and options you have.

- Homeowners who are unable to get approved through a traditional mortgage lender or bank may need to use the services of a sub prime mortgage lender. While the loans these lenders are able to provide are often at a higher interest rate, they are often times a homeowners only chance at getting approved for a bad credit mortgage refinancing.

Banks and mortgage lenders would rather help you than let you lose your home to foreclosure or mortgage default, especially in this economy. Homeowners who know they are going through hard times, or have already missed or been late on some mortgage payments, should take action now. Even with bad credit, it is entirely possible to get a beneficial home loan modification or refinancing, and change your financial out look for the positive.

By: Michael Petrone

4 Bad Credit Mortgage Refinance Tips

admin — Sat, 20 Feb 2010 19:05:36 +0000

Refinancing a mortgage with bad credit is not that hard to do. However, there are some things which you can do that will increase the chances of getting approved the first time. Here are some tips for homeowners who want to get a mortgage refinance with bad credit:

1) Always have the proper documents.

Make sure to have all of the documents you will need before refinancing. Regardless of your credit rating this will help you get approved, as it makes the mortgage lenders or banks jobs easier. Often, things like tax returns, bank statements, paycheck stubs, and other related financial information is needed. Of course, things such as social security numbers, and identity will also be verified. Often times, homeowners think they are ready to apply, and do not have all of the documents they need. Ask a mortgage lender or bank what to bring, and make a list of it.

2) Verify your credit.

Make sure you know your credit rating. Even if it is low, check for errors or things which should not be there. Say you field for bankruptcy 8 years ago, that should not be present anymore on your report. Make sure everything is correct, and if it is not, ask that is gets corrected. Even little marks can effect you getting approved, and the rate of interest you pay, dramatically.

3) Know why you want to refinance.

Knowing the reason why you wish to refinance will really help you, and the potential bank or mortgage lender, narrow down the home loan options available to you. If you want lower interest rates, a lower monthly payment, or even cash back from the homes equity, know that they are all possible to get, even with bad credit. However, knowing why, and what your expecting from mortgage refinancing will help you get approved.

4) Compare different mortgage refinancing options from different lenders or banks.

Bad credit mortgage refinancing comparison shopping is even more important. Homeowners need to shop around to different mortgage lenders or banks. Each potential lender has different rates, terms, and conditions, which are available to homeowners. Shopping around and finding the cheapest, best one for you, will help ensure you get the best refinancing deal possible.

By: Michael Petrone

Bad Credit Mortgage Refinancing – Yes, You Can Do It

admin — Wed, 10 Feb 2010 23:07:47 +0000

These days it’s all too easy to have your credit slip down a few notches. If you are looking to refinance, that’s not where you want to be, but it’s not the end of the world either. Let your FICO score dip below 680 and you could be a candidate for bad credit mortgage refinancing. It depends on the individual lender. Let it get down around 650 or worse and you’ll be a bad credit refinance candidate for sure. With the recent shakeup in the sub-prime lending market, many lenders are being more selective about who they’ll extend refinance loans to. They’ll be looking seriously at your recent credit history. Several sub-prime lenders have ceased operations or declared bankruptcy, so there are fewer options available to borrowers in the sub-prime category.

Even so, you can still refinance, bad credit or not. There are options available to you, so you can take advantage of better interest rates. This can be especially important if you purchased your home using an adjustable rate mortgage, and the 3 or 5 year initial period is about to expire. When it does, your mortgage will adjust upward. This can cost you an extra $200 – $600 per month in higher mortgage payments. Many people don’t have the financial wherewithal to absorb such an increase in their mortgage payment. Even if you do, there’s little reason to do so when you can refinance and avoid the payment increase.

One of the first things you should do before you attempt to get your refinance underway is to order a copy of your credit report. You can do that for free once per year from any of the three major credit reporting bureaus. It’s really important that you do this because it will give you an opportunity to correct any mistakes contained in the report. A 2004 study indicated that about 25% of credit reports contained factual errors that reduced the borrower’s credit scores. Don’t let that happen to you, if pushes you into the sub-prime category, it can cost you thousands of dollars. In addition, you may find some accounts that are listed as outstanding but only because you owe a few dollars on them. Those are easily corrected so they’ll read “Paid In Full” on your credit report. That will go a long way towards raising your FICO score, and getting you a better interest rate on your refinance.

After you’ve done all your homework and corrected any inaccuracies on your credit report, you can begin the process of getting your refinance loan. Contact the different companies so your can do a thorough comparison. There is a large variation among different lenders. Get a written estimate of their rate and fee structure. You’ll notice some will quote mortgages with more fees, while others will have lower interest rates. Rarely will you find both. These companies have to pay for the money too, and it’s not free. Be
very careful when you scrutinize the different offers.

There are some things you need to look for. One of these is prepayment penalties. This a penalty the lender imposes if you pay the loan off early. They do this because they don’t get all the interest if you pay the loan off early. They were counting on a 15 or 30 year income stream from you in the form of interest. Typically it’s best not to get a mortgage with a prepayment penalty, even if it includes a lower interest rate, which they typically do. If the penalty is large, you’ll be severely hampered if you want to pay off the loan early, such as if you’d like to refinance again, or if you sell your home. Interest only mortgages are regularly sadled with this type of clause.

One of the things that is difficult about any refinance, but bad credit refinancing in particular, is comparing the offers. There are many business out there now that allow different lenders to compete for your refinance business. The great thing is, the lenders know their in a competitive bidding situation, so they go out of their way to give you the best refinance deal possible. Remember you do have options, no matter how bad your credit may be. Just do your homework first. The money you save on your refinancing will be your own.

By: Steve Faber

Bad Credit Mortgage Refinancing is Easier Than Ever

admin — Wed, 10 Feb 2010 04:42:54 +0000

Homeowners who have bad credit can get approved for mortgage refinancing easier than they think. New home loan refinance options are in place which will help nearly any homeowner get a more affordable home loan every month. Here are some tips for homeowners looking to refinance with bad credit:

1) Know Why

You must know why you want to refinance. With so many options, knowing what you need will help you get the best loan for you. However, mortgage lenders and banks often push a refinancing deal that will profit them the most. Always make sure you know why, and what your expecting from mortgage refinancing.

2) Have all paperwork and documents.

This is a crucial step that many homeowners make a mistake on. Always make sure to double check anything that a mortgage lender or bank will see. This includes credit reports, loan applications, tax returns, and all relevant information. If there any questions which can not be answered, or facts that can not be verified, you will be denied a refinancing, especially with bad credit. Coming in properly prepared shows a commitment to the lender or bank that you are willing to do things the correct way.

3) Get the best deal you can.

While this seems obvious, many homeowners do not comparison shop between different mortgage lenders and the options available to them. Fees, costs and interest rates are different at each lender or bank, and finding the best ones is up to you. Just like any big purchase, do some research and comparison shop prior to agreeing to any bad credit mortgage refinancing option.

Bad credit mortgage refinance is not as hard to get as it was in the past. Many homeowners are struggling, and lenders and banks know that. Almost every homeowner can get a beneficial refinancing for their home loan, even with bad credit.

By: Michael Petrone

3 Bad Credit Mortgage Refinancing Tips For Getting an Approval

admin — Sat, 06 Feb 2010 02:00:04 +0000

When you have a bad credit history, a mortgage refinance is most likely the cheapest way to access credit. Depending on the homes value and your equity in it, you can get a cash out refinancing for bill consolidation or home improvements. Or, it is possible to obtain a lower interest rate, and lower your monthly payments. Follow these 3 steps to get the best mortgage refinancing deal you can:

1) Compare Interest Rates
Before signing a mortgage refinancing deal, be sure to compare interest rates between lenders. This should give you a rough idea of what you can expect, and how much you can borrow. The lower the rate is means the more you can borrow for cheaper, which ultimately results in savings. This also allows you to find a better lender, who is offering you a better deal.

Also, make sure that potential mortgage lenders do not access your credit report. Too many people looking into your credit can result in a lowered credit rating. Typically, there is no guarantee on what other lenders will quote you, however, it will give a good idea of where you stand, especially if you know your credit score and tell it to them.

2) Know the details of your Credit Report, and clean it up a little
Before you apply for a mortgage refinancing, make sure you are familiar with your own credit history. Checking for mistakes or inaccuracies can save you a lot of time and hassle. You may even see that your credit is not as bad as you though it was.

If you have the opportunity to pay off small lingering debts, or reduce the cards which are nearly maxed out, this can help. Having your debt spread among a few accounts is better than having accounts maxed out.

3) Get Better Mortgage Terms, Conditions, and Interest Rates
Typically, homeowners who want to refinance, but have a low credit score, need to use a sub prime mortgage lender. These lenders specialize in these loan types, and can often obtain a better interest rate than a traditional bank or mortgage lender. ARM (Adjustable Rate Mortgage) loans typically offer the lowest interest rates. There is a risk though that the ARM will increase, and therefore your mortgage payment goes up.

Always listen and ask about all of your mortgage lenders loan options. Sometimes, you may find one you were not aware of that better meets your financial needs. Something like a chance to refinance your mortgage again in 24 months should your credit improve would be an example of a refinancing option.

Homeowners looking to get a mortgage refinancing today need not really whether or not they will get approved. They should be concerned with what lender or bank is offering them the lowest rate possible. Lower interest rates are truly how a refinancing is the most beneficial for a homeowner.

By: Michael Petrone

Bad Credit Mortgage Refinancing Home Loan

admin — Tue, 02 Feb 2010 12:25:34 +0000

Bad credit mortgage refinancing loans help borrowers with credit problems refinance an existing mortgage to either payoff debt or get cash out. If your credit is poor because of excessive credit card debt then bad credit refinancing is one of the best ways to improve your credit score.

Bad credit refinancing is typically for home owners who have credit scores under 620 and have late mortgage payment’s in the last 12 months. Sub prime lenders are the main source for these types of loans and many will lend to bad credit borrowers with a 30, 60 and even a 90 day late payment on record. Although the amount of equity you can borrow will be greatly reduced with the amount of late payments you have. Qualifying Credit scores for sub prime loans begin at 500 and go all the way up to 700, at a 500 credit score expect to be able to borrow 70-80% of your home appraised value. The higher your credit score the higher the Loan To Value you can borrow.

Many sub prime lenders offer 2 or 3 year Adjustable Rate Mortgages to bad credit borrowers, short term Adjustable mortgages are not a good idea for the bad credit borrower. The biggest drawback to an ARM is that if you should fail to improve you credit score and be unable to refinance, your payments will begin to rise when your adjustment period begins. The rise in payments can often be hundreds of dollars a month making your mortgage difficult to pay. When applying for a bad credit home loan It is best to stick with a fixed rate subprime mortgage, if you need a lower payment ask your mortgage broker about 40 year fixed rate subprime loans.

With the availability of subprime home loans bad credit refinancing can be a great way to improve your credit score, however when the wrong programs are chosen it can do just the opposite. Use a good reputable mortgage broker and always use common sense when shopping for your subprime home loan.

Learn More About Bad Credit Home loans

By: Darin Sewell

Bad Credit Mortgage Refinancing – It’s Not Just a Dream

admin — Mon, 01 Feb 2010 19:38:04 +0000

You may think that just because you have bad credit you won’t be refinancing your mortgage any time soon. Well, cheer up. You couldn’t be more wrong. With a just a bit of patience, you could be on your way to refinancing your mortgage. One key to your refinancing effort is raising your credit score. If it’s below 680 or so, you may fall into the sub-prime category. In the past, you could drift down to the 650 range with some mortgage lenders before you triggered their sub-prime threshold. You’ll save substantial money on your refinance by giving your credit score a little boost. You can probably make all this happen in just a few weeks, maybe even sooner. In addition, your credit may not be as bad as you think. Even if it turns out you actually do have really bad credit, you’ll still benefit from raising it before you do your refinancing.

The first thing you should do is get your free credit report from any one of the three credit reporting bureaus; Equifax, Experian, or TransUnion. Relax, it won’t cost you a cent. You now have the right to receive one report for free each year from each of the three credit agencies. Most experts advise you do so as the first step to getting a handle on your credit score. In addition, you should arrange to receive your reports staggered at four month intervals. That way you’ll never be more than a few months from a fresh credit report.

Once you have your credit report, you can see if there is anything you can clear up in the short term. About 25% of Americans have credit reports with at least some inaccurate entries, so there is a decent chance you’ll have something on there you can clear up to start the process of raising your score. You need to write letters to the creditors that are incorrectly reporting anything on your report.

Some of the errors you may encounter are: accounts listed as owing that are actually paid off and accounts that aren’t really yours. They may belong to someone with a similar name or social security number. When disputing any credit report entries, make sure you carefully document your position. Never send any of the original documentation, only send copies. Once you get any credit inaccuracies resolved, it’s time to move on to some other things you can do to help your credit score in the short term.

Why should you be so concerned with raising your credit score in the short term? Because you’ll save substantial money in interest charges, that’s why. In addition, your mortgage will likely close faster, and you’ll have a greater pool of lenders to choose from. So, even though you may have bad credit, you should aim to raise your credit score as high as possible before you try refinancing your mortgage.

What else can you do to raise your credit score before you get that mortgage? The most important thing you can do to help raise your credit score is avoid late payments. If you have any payments that are late, send them in, post haste. Lenders look at recent late payments more closely than those that are aged at least 24 months.

The next thing you should examine is your credit utilization score. That measures the percentage of your available revolving credit that you are currently using. If you have credit card limits totaling $25,000, and your outstanding credit card balances total $15,000, your credit utilization score is 60%. One note here; make sure your creditors are correctly reporting your credit card limits. If they are incorrectly stating them as too low, it will likewise lower your credit utilization score.

The strategy is to rapidly nab a few extra credit score points by paying down as much of your debt as possible. Your revolving accounts, such as credit cards and store charge cards are the most important for this strategy. That will also help your debt to income ratio, another figure used by mortgage lenders to determine your loan eligibility.

If you can raise your credit score a few points, you’ll fend much better on the mortgage market. You may still need to pay a higher interest rate than if you had great credit, but you can get the benefits of refinancing nonetheless.

By: Steve Faber