Bad credit refinancing » Economy

How to Lower Your Mortgage Payment by Refinancing

admin — Wed, 09 Jun 2010 13:11:43 +0000

As the US economy slows and many experts are predicting a recession, many homeowners are looking for ways of easing the strain on their monthly budgets. Refinancing your mortgage to get a lower payment is an excellent way to free up cash in your budget with a lower payment if you go about it correctly. Here are several tips to help you refinance your mortgage and get a lower monthly payment without paying too much in the process.

If you purchased your home with an Adjustable Rate Mortgage that is due to reset soon and you are concerned that you’ll no longer be able to afford your payments when your lender adjusts the loan, refinancing could give you the peace of mind you need while freeing up hundreds of dollars in your budget, but what about the risks?

Refinancing with a lower monthly payment will save you money in the short term but you may pay more in finance charges if you lower your payment by extending the loan’s term. You’ll also be paying down the mortgage’s balance at a much slower rate with the lower payment amount.

Two Methods for Lowering Your Payment

There are two ways of lowering your monthly mortgage payment that can be used together. The first method of lowering your mortgage payment when refinancing is by extending the term length of your new loan. Term length is simply the amount of time you have to repay the loan. The most common term lengths when refinancing your mortgage are fifteen and thirty years; however, there are now forty and even fifty year mortgages to choose from. To illustrate how extending your term length lowers your payments consider the following example.

Suppose you are refinancing your mortgage for $100,000 at a 6.25% mortgage rate. You are considering two term lengths: 15 and 20 years. With a 15 year term length your payment will $857 and you’ll pay a total of $154,300 over the duration of your mortgage. By extending the term length to 20 years your payment will go down to $730 per month; however, you’ll pay a total of $175,400 for the same loan.

The second method of lowering your mortgage payment is by refinancing with a lower mortgage rate. This has the added advantage of paying less for your financing over the duration of your loan. These two methods can be combined to further reduce your monthly payment; however, whenever you extend the loan term you will pay more over the life of the new mortgage. You can learn more about your refinancing options, including expensive pitfalls to avoid by registering for a free mortgage video tutorial.

By: Louie Latour

Can I Refinance My Car With Bad Credit?

admin — Mon, 29 Mar 2010 07:05:14 +0000

Refinancing your car with bad credit is actually very simple. The key to being able to do this and to actually get lower car payments without having to put any money down, is using a good lending source. The process is the same as obtaining a duplicate car loan, it’s just that you have to find a lender that will approve you for a lower interest rate. There are a few really good sources online that allow you to do this easily and with minimal headaches.

Many people these days are ending up in situations where their bills are more than their income. It’s very common and especially with the latest turn of event in the economy. More and more people are finding themselves in the predicament of having to choose between a car payment and a light bill. What used to be pocket money for extra little things is now being tightened up as people try to simply get by.

Refinancing your car loan, even with bad credit is a good way to cut corners and lower your monthly expenses. If you’ve had your vehicle for a couple years, you can get approved for another loan at a better interest rate and with better terms, extending out your car loan so that your payments are lowered. The central key in doing this is using the right lending services. Not all loan companies are the same and you know that there are many out there that won’t approve you with bad credit. That’s why it’s important to deal with car finance and refinance companies that work specifically with people that have bad credit and need a new car loan, or a car loan refinance with bad credit.

By: Jason Lanier

Refinance With Bad Credit

admin — Mon, 15 Feb 2010 14:22:46 +0000

In today’s economy, refinancing with bad credit is not unusual, on the contrary, it’s more common than you might think. Learning more about your options can save you stress and undue charges, if you know what to ask for.

First, it’s important to fully understand your position in trying to ease your financial woes. Your mortgage is probably your highest monthly expense and if you could rewrite your mortgage and possibly make use of your equity, you could greatly improve your entire financial picture and reset your stress meter, right?

As a Realtor, I know firsthand, that there are many people totally unaware of what awaits unsuspecting homebuyers, when they apply for a mortgage. According to recent findings, 79 percent
of consumer’s credit reports have mistakes or errors. That is an alarming statistic in itself, but what does that say to our entire economy?

Refinancing your mortgage with bad credit is not only possible, but much easier than you’d think. Refinance can be a life-saving option for your whole financial situation. You could refinance your mortgage and take enough equity cash out, to pay off some of those incredible credit card debts.
Just imagine having fewer bills, less interest being assessed against you and having a refinanced mortgage that you can pay comfortably.

Bad credit is not the end of all time. Know that you can actually view your own credit report and see if you don’t find items in question, that may not belong to you. Credit bureaus make mistakes too, and more often than you’d expect. Let’s face it, they gather information from thousands of sources and that’s where it all begins. By the time it ends up on credit reports everywhere, there are tons of errors.

The best approach to refinancing your mortgage with bad credit is to check your credit reports first, find any items that you don’t think should be there, and report these items to your credit bureau for dispute.
If you dispute these items, the credit bureau must flag these items as in dispute, which in itself will improve your credit score. This is a totally legal process that you can turn the tides of financial reports on themselves. If you dispute enough items, you could easily refinance your mortgage and benefit from your revised credit report.

The next step is to shop your lenders for the absolute best interest rate and terms in which to refinance your mortgage. Lenders are eager to have your business, so keep this in mind. Don’t jump at your first offer. Make them prove to you that they are your best choice. Comparisons are your friend, use them wisely and benefit as much as you possibly can. A happy home is one with little or no stress.

By: Jimmy Wilson

Bad Credit Mortgage Refinancing With the Government Stimulus Plan

admin — Sat, 09 Jan 2010 00:34:06 +0000

Bad credit is no longer a reason not to apply for mortgage refinancing. New Government programs allow millions of homeowners in all situations the chance to get approved for a mortgage refinancing or modification into affordable monthly payments. Bad credit, bad mortgage, a home that is losing value, or other financial problems can actually help a homeowner get approved.

This is because of the fact that over $75 billion in funding is being given to mortgage lenders and banks who approve a homeowner who is at risk of losing their home. This means that banks and mortgage lenders have eased some of their mortgage restrictions so that they can help even more people. They have done this because for every homeowner they help with getting approved for refinancing or modification, they receive incentive money from the Government.

This money helps minimize risks, and allows the banks and lenders the chance to temporarily alter their lending policies to help the most people they can. There are also additional incentives that lenders or banks get for every year, up to 5 years, a homeowner is able to make their mortgage payments on time and in full. This is an extra incentive to truly help homeowners get the lowest possible monthly payments possible. This also means that homeowners with bad credit, or other financial problems, can get the help they need to save their home, or a lot of money, easier than ever.

Homeowners who are barely able to afford their home loan, are facing foreclosure, or are thinking about short selling, should consider a mortgage refinance. With the Governments stimulus plan in effect, an estimated 8 million homeowners can get the help they need. This is a never before seen attempt to help homeowners, and entire neighborhoods, recover from the bad economy, and worse housing market. Take advantage of these great new options available to all types of homeowners and refinance or modify your home loan today.

By: Michael Petrone

Bad Credit Home Refinance – Is it Really Possible?

admin — Fri, 25 Dec 2009 19:48:51 +0000

You may need to refinance your home for any of several reasons. Perhaps, you have more than one reason to refinance the home. If your credit score is low and your credit reports have a few rough spots, then it is sometimes difficult to find a finance company that will allow you to refinance a home to meet those needs. Diligent searching, however, will allow you to find bad credit home refinance.

There are many reasons people choose to refinance their home. While some are perfectly legitimate reasons for refinancing, others may not make sense to the rest of us. Ultimately, your home is your property and the reasons you choose to refinance should make sense to you.

The decision to refinance your home can make a difference in your financial future for the next thirty years. If, over the course of those thirty years, inflation continues at a normal rate, the amount of money you are paying ten years from now should seem like a bargain in housing. This is one advantage of buying a home over renting. Rental rates will continue to increase with no equity being built. Your home’s value should also increase to rise and you should be building equity. Your home payment should stay relatively stable.

When the economy takes a drop, like it did in 2008-2009, a house payment can begin to take a larger chunk out of your take home pay. In addition, instead of increasing in value, the home can actually decrease in value. This made it difficult for many people to be able to refinance their homes. Bad credit home refinance became almost impossible to find.

Now that the economy is starting to recover, you can once again find bad credit home refinance. This may help you to save your home from foreclosure.

By: Alan Lim