Bad credit refinancing » Bad Credit Refinancing

Can I Refinance With Bad Credit? – Yes – Here is How

admin — Fri, 19 Mar 2010 14:41:20 +0000

A popular question many home owners are asking is ‘Can I Refinance With Bad Credit’? As many people see their mortgages get much more expensive as a result of so called teaser or discount periods coming to an end may people are finding that they are struggling to meet their new mortgage repayments. In this article I will explain how refinancing can save you money, even if you have bad credit.

Refinancing can be a great thing. By doing it correctly you can potentially save hundreds of dollars off your monthly repayments.

Refinance your existing mortgage loan

As teaser rates run out the cost of your home loan can go up by a huge amount each month. It makes sense to refinance as soon as possible as you could be able to save several hundred dollars each month by getting the best deal available.

Refinance other short term debts onto a new mortgage

Short term debts such as store cards and credit cards are often the most expensive. Interest rates of between 15% and 50% are not uncommon. Perhaps the easiest way to save money is to use your mortgage to pay off these debts. You save money by simply transferring the debt onto a product with a cheaper interest rate. Not only this but you will find that after you consolidate all of your debts you only have one repayment each month (your mortgage) instead of several. This can make keeping track of your payments much easier.

How to get the best refinance deal

There are several factors to get the best refinance deal possible. These include maximizing your credit score, fully researching the market.

By: James McKerr

How Can You Get A Bad Credit Mortgage Refinance?

admin — Thu, 04 Mar 2010 23:21:38 +0000

Bad credit mortgage refinance plays a prominent part in paying off your previous debt. This kind of refinance loan is especially beneficial to those individuals who are suffering from bad credit. If your credit score is not up to the mark due to excessive credit card debt then bad credit refinancing can help you immensely in improving your credit score.

As lenders are taking a huge gamble on you, there is hardly a surprise that rate of bad credit mortgage refinance loan are usually quite high. If you want to lower the rate, it is quite important that you improve your credit score first before applying for a loan.

Talking about the application procedure of bad credit mortgage refinance loan, you just need to fill in some personal details such as your name, your father’s name, address and your present job. In some cases, lenders can also ask you to submit the attested copies of your salary slip and address verification.

Once you submit application with all the necessary details, lender will review your application. Unlike other loans, your bad credit mortgage refinance application is going to be approved very quickly. But this will only happen when you provide lender with authentic information. As market is flooded with number of sub prime lenders, you will face no difficulty in finding a reputed lender for bad credit mortgage refinance.

By: Sara Sentor

Bad Credit Refinancing – Making An Informed Decision

admin — Mon, 22 Feb 2010 23:16:21 +0000

Refinancing as a way to improve a bad credit situation is nothing new. What is new is the range of refinancing options now available to homeowners. Here are the three most popular types of non-traditional bad credit mortgages:

1. Interest-Only Mortgages allow homeowners to pay only the monthly interest due on the loan for an initial period of time, usually from three-to-ten years. After this, the payments go up to cover both principal and interest for the rest of the mortgage term.

2. Negative Amortization Mortgages can have even lower initial payments because they let borrowers pay less than the interest due on the loan, with the unpaid balance being added to the principal. This means the amount owed on the mortgage actually increases rather than decreases over the years.

3. Option Payment ARMs let homeowners choose the type of monthly payment they want to make. The options include an interest-only payment; a minimum payment that doesn’t cover the principal and interest due, (see above); or a payment calculated to pay off the mortgage in either 15, 30, or 40 years.

Fixed-Rate or Adjustable-Rate Refinancing

CNNMoney.com senior writer Jeanne Sahadi points out that, “Rarely has there been such an advantageous time to refinance into a 30-year fixed-rate mortgage if you have an adjustable-rate loan. But homeowners’ love affair with riskier ARMs is still strong . . . One in three homeowners refinancing today is choosing the financially riskier interest-only and payment-option ARMs, according to data from Loan Performance.”

Learn how to save money on bad credit refinancing, and get a free loan quote at Easy Second Mortgages [http://www.easysecondmortgages.com]. Find out how much you could be qualified to borrow and what your monthly payments might be. The information you provide will not be shared or sold but will only be used to prepare your free quote.

By: Mike Hamel

Bad Credit Refinancing Success Guide-What You Can Do To Improve Your Chances & Loan Options

admin — Mon, 08 Feb 2010 23:51:48 +0000

Unless you have shopped for a mortgage in the last 3-6 months, be ready for a rude awakening if you are seeking a lot cost effective alternatives for bad credit refinancing—over 70 bad credit lenders have gone bankrupt since the beginning of 2007 & many of the programs that once assisted for bad credit refinancing have been changed or discontinued altogether.

Although significant changes have been imposed to bad credit refinancing guidelines, there are number of things homeowners can do to improve their chances of getting a good deal on bad credit refinancing—consider the following before applying for a bad credit refinance mortgage:

1). Attempt to clear up any past due or outstanding amounts on any of your open revolving/installment accounts. By bringing any outstanding or past due amounts current, you will stop your FICO scores from dropping any further, potentially improve your credit scores (if you are making significant changes to the outstanding balance to available credit ratio), potentially improve your DTI (debt to income) ratio for loan qualification and hopefully demonstrate to the your future lender that you are an “honorable” credit risk worthy of consideration.

2). Attempt to pay down the outstanding balances on any of your open revolving/installment accounts. By reducing your outstanding credit debt, you have the opportunity to increase your scores, improve your DTI ratio and increase your chances of meeting the front end/back end ratio guideline requirements subscribed to by most lenders. Making any contribution to debt reduction will have a positive effect on the issues outlined above, but to bring about significant and dramatic change, one should strive to reduce their overall outstanding balance to available credit ratio to 30-35% (example—if you have a credit card with a credit limit of $1000 with an existing balance of $600, your current outstanding balance to available credit ratio would be 60—in this case, you would need to make a payment of $300 to bring about the desired effects to your credit score and DTI ratio).

3). Accelerate the payoff of debt. Aside from the residual benefits you would receive to your credit score and DTI ratio (as outlined above), the added benefit to an accelerated debt reduction plan is an increased purchasing power (with less debt, you could afford to allocate more to housing).

4). Invest time or money (or both) in credit repair. Did you know that according to recent surveys, 1 out of 4 credit reports contain errors—these types of errors could be on your credit report and could potentially be affecting your credit score. Review a recent copy of your credit report long before you consider bad credit refinancing—check it for accuracy, omissions or falsities. If you should find problems, dispute them immediately—dispute submission & resolution can be done by yourself, online or outsourced to a third party. Don’t let wrong information on your credit report give the “wrong” impression to your future lender.

5). Adopt a good credit score. Did you know there is a simple way to get a better credit score, that requires a fraction of the time, effort or money used in some of the strategies outlined above? Become an authorized user. Ask a family member, relative or close friend (that has credit accounts that are both in good standing & at least 2 years old) to add you to their account as an authorized user. By doing so, you will “adopt” the payment history, credit history and good standing of this credit reference and your scores will improve because of it.

6). If you have been employed by the same company for more then two years and are considering a job change, stay put until after the refinance is done. Most conventional loan programs require 2 years of steady employment to be considered eligible—although there are programs that will overlook this matter, the terms and or conditions will be less desirable when compared to those offerings made to individuals with steady employment histories.

7). Don’t make any major purchases (like buy a new car) or add new debt to your credit accounts until after the refinance is done. Believe it or not, a lot of loans fail to materialize because of this—adding new debt effects your DTI ratio and will reduce the mortgage amount you can afford in the eyes of your future lender. For those that don’t have the time, money or inclination to undertake the task of implementing one of the above strategies, there are two more strategies for you:

8). Review loan programs that don’t base their rates/terms on your credit score.

9). Review programs that allow non-owner occupied co-borrowers. Despite all the changes in the lending industry, there are still good loans for those interested in bad credit refinancing.

Programs containing the following features/benefits:

- Not predicated on your credit score (this program has assisted with the bad credit refinancing of homeowners with FICO scores as low as 400—this program can even be used by those that have no credit scores).

- Allow you to refinance up to 95% of the current value of your home.

- Don’t require all collection accounts/liens to be paid off, funds to close can be gifted from a relative, family member or friend or granted by using a down payment assistance grant from a non-profit organization.

- Can finance the cost of energy efficiency improvements without the need for additional qualification.

- Tolerant to derogatory credit and past credit problems.

This program also allows for the use of a non-owner occupied co-borrower (that has a better credit history, score, DTI ratio) to go on the mortgage with you to assist you with in qualifying you for a better mortgage/lower interest rate/a more desirable loan program.

By: H. Scott Miller

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

Getting a Bad Credit Auto Refinancing Loan

admin — Wed, 27 Jan 2010 11:38:44 +0000

If you purchased you automobile with a loan from a poor credit lender and have been careful to make your payments on time then your credit score will have improved. You are now in a much better position with regard to your credit. For one it gives you the chance to rebuild good credit history. Now, you can also apply for bad credit auto refinancing with confidence.

The reason most people choose to refinance a car loan is to reduce their monthly payments. Or the interest rates have fallen since you financed originally. Refinancing would be a good option in both in cases.

When you have a bad credit rating or been refuse finance in the past. In this case you will have to use a bad credit auto refinance lender. You should easily qualify for an auto refinance loan if you have been making your car payments on time and in full. Qualifying for the loan should be easy.

Now there are a number of points you need to consider when you are looking to refinance a car. It basically starts the clock all over again. Basically, what happens is that you are taking out a new loan to cover the amount that is owed on your vehicle. So the finance company is going to want to see how you are maintaining your payments on your current loan. You may also be required to make a down payment on the new refinance loan. To get the lowest rate a small down payment may be required, but this will depend on the lender and will vary.

Also when thinking about bad credit auto refinancing loan, determine how long are you really interested in keeping your car. If for example you apply for a 4 year refinancing loan then, you decide that you are just keeping the vehicle for just another year. In this case refinancing may not be your best option. A better option would be trading your car for a newer one and apply for a new loan entirely.

So you have decided that a bad credit refinancing loan is right for you. Then its time to do some research on what auto refinancing loans are available. You should start with your current car loan lender. They are already familiar with you as a customer and have knowledge of your payment history.

In closing, finding a company that provides a bad credit refinancing loan can be researched online. If your current car loan lender cannot approve your loan, do not panic. You can find many banks that will be able to help you with a refinance loan.

Remember that the main reason for refinancing is to lower your car payments, and not to extend the loan. Regardless which option you decide on, you should be able to get the auto refinancing you need.

By: N Hynes

Choosing a Bad Credit Refinance Company – Information to Help You Pick the Right Bad Credit Lender

admin — Sun, 17 Jan 2010 17:58:13 +0000

If you have less then perfect credit and are trying to refinance your home you are going to need the services of a bad credit refinance company. Your local bank will not be able to assist you with a bad credit mortgage so you will more them likely be using a mortgage broker. Mortgage brokers are extremely valuable to people with bad credit and are working in your best interests, not the banks!

When you first begin your search for a bad credit refinance company you should be looking for a few important things. The first is how long has the mortgage broker been in business and what is there level of experience! The second is does the mortgage broker just do bad credit refinancing or will you be able to refinance with the same company when your credit improves!

Ask each bad credit refinance company for a Good Faith Estimate so you can compare closing fees and loan programs. Any good company will supply this without hesitation. Although keep in mind if your credit is not pulled to give the mortgage broker an adequate picture of your credit then the fees could change. However having your credit pulled only three times will not result in a decrease in your credit score so always have the mortgage company pull your credit to get you an accurate Good Faith Estimate!

Take the Good Faith Estimate with you to the closing and compare it to the original and if the fees change by more then a few hundred dollars you should question the bad credit refinance company about the increases. Nothing says that you have to close the loan if you feel cheated choose not to close without an explanation for the fee increases.

Finding three bad credit mortgage companies and choosing the one you feel the most comfortable with is generally the route most borrowers take and is a good approach to selecting a lender for your loan. But when ever working with any financial transaction remain aware and ask questions if some thing seems suspicious or you do not understand a fee or charge. After all the mortgage broker works for you!

By: Darin Sewell

Bad Credit Refinancing Home Loan

admin — Wed, 30 Dec 2009 09:31:57 +0000

If you have bad credit, is it still possible to get a refinancing home loan? A lot of people might think this is close to impossible, but it actually is not at all. There might be a little difficulty in the process, but it is still possible to get your loan application approved. To increase your changes of getting your loan approved, it is better to understand the mechanics of a bad credit refinancing home loan.

In its most basic form, a bad credit refinancing home loan is the typical solution people turn to when they want to replace their existing mortgage plan. A new mortgage plan is then created to replace or refinance the existing one. With this type of loan, you would actually be processing a new home loan application. You should then be prepared to pay certain fees, such as attorney fees, title search, and pre-payment penalty fees.

There are many reasons why a lot of people turn to bad credit refinancing home loans. The most common reason is to pay off the existing mortgage, in the hopes of getting enough money to start over in the cleanest possible slate. This, of course, is quite hard to do because you already have bad credit to your name. What’s more, there are subprime lenders who just might take advantage of your situation because they know that you do not have that many options to begin with anymore. Chances are, these lenders will charge you high interest rates since you might feel pressured to accept these rates nonetheless. Thus, you have to be very cautious when you’re considering applying for this type of loan.

The first thing to do here is to contact your present mortgage lender. If your payment history with this particular lender has no flaws, then he or she might be willing to discuss implementing a reasonable interest rate with you. But if your payment history is not too good, then you should consider shopping for subprime lenders.

Subprime lenders specialize in loans that are of high risk in nature. Because of their specialty, they have a lot of loan programs for people who have bad credit history. Applicants can then choose from their variety of programs that fits their needs and budget the most. Shopping for subprime lenders online is an effective method of getting the best bad credit refinancing home loan possible. Make sure to send out loan applications to as many subprime lenders as possible. This way, you can compare lenders and their mortgage quotes side by side, and find the best alternative for your current situation.

By: Sean Bailey

Bad Credit Refinancing Ideas

admin — Wed, 16 Dec 2009 13:20:11 +0000

Many homeowners stuck with a high interest loan are suffering under the expensive mortgage payments that are difficult to make, especially if someone in the household has lost a job. Bad credit refinancing can often be the solution if you can find a lender who will give you a mortgage at a lower interest rate given your bad credit. You are in a difficult situation because you are a person who probably would not have gotten a loan at a time when the lending standards were at a normal level. Now, you will find that other lenders may not be willing to take a chance on you because of your low credit score.

Probably the best thing you can do is to resolve to improve your poor credit by taking control of your finances, knowing your credit score, and understanding the behavior that is resulting in your bad credit. By changing this, you can improve your credit score to a level that will dramatically increase the chances of bad credit refinancing. You may also qualify for government assistance but I would not depend on this.

If at all possible, try to avoid simply walking away from the mortgage by not paying and moving out. You will escape the mortgage payments, but you will find it difficult to buy a house again or even get a car loan. Some landlords may even be hesitant to rent to you since you have such bad credit. If you are turned down by one lender, keep shopping around and even consider talking to an agent for their advice on who is writing loans for people in your situation recently.

By: Jason H Stevens

Bad Credit Refinance 101: The Hows and The Whats

admin — Wed, 09 Dec 2009 07:17:58 +0000

If you are like every other home owner or general consumer out there, you need to pay for your expenses somehow. If you have bad credit, you might be limited in your options as to what you can do (or so you think…keep reading!). This can be especially annoying to homeowners who want to refinance their mortgages to take advantage of low interest rates but have had a few debt defaults in recent years. The story is always the same: you see these low 5% interest rates advertised on TV and you know that you deserve to refinance your home loan with this low interest rate. However, once you call, you find out that in fact you can refinance your mortgage, but it will cost you a lot more than you think. “What?” you think to yourself… “Why does it cost more for me to refinance my mortgage than I thought it would?” The reason is simple: bad credit. Refinancing with bad credit can be difficult. You might have filed for bankruptcy or racked up a whole bunch of debt which you just couldn’t pay off. Debt defaults take a long time to get off your credit report (if they ever come off!) and they can affect every lender to whom you owe money.

This is because these days, lenders are very clued in to borrowers credit scores and credit history. All your credit information is stored in a giant database somewhere and if your credit is bad for some reason, it’s going to show up on a mortgage refinancing report. And banks probably don’t mind seeing a few defaults and bad credit accounts here and there. More fees for them! Your bank might like to see one of their client’s earmarked as ‘bad credit’…they can raise your interest rate and you can’t do anything about it.

These days, having bad credit isn’t necessarily as bad as it should be. This is because banks are business entities too. Banks borrow money just like people do. In times of relatively low interest rates, banks need to make money by originating loans. And, a lot of new ‘subprime’ lenders have opened up shop in recent years and are specifically in the business of lending to people with bad credit. They are looking to refinance bad credit accounts like yours and collect massive fees on the backend.

Many people with bad credit history look to take out loans from friends and family. While this may be a fairly good short term solution, it might not be the smartest of long term business moves. What you need to do is refinance your mortgage and lower your payment. The best thing you can do for yourself is to shop around. I’d be willing to bet that some banks will give you a better deal on a mortgage refinancing than you think they would. Find out who’s got the best rate to get the best deal on your loan. This might take a little legwork, but it could pay off. Finding that right bank to give you the right deal on your refinancing will be worth the effort.

Mortgage can last a lifetime and that extra 1% can add up to literally thousands of dollars over the years. I have friends that are in their 70s and still paying off their home loans. It’ll pay off in the long run to make sure you find the best deal possible. Don’t let bad credit stop you from refinancing your home.

By: Richard Martin