Bad credit refinancing » Loan Application

Mortgage Refinance – Tips to Help You Cut Fees and Costs

admin — Thu, 03 Jun 2010 03:44:23 +0000

Saving money through a mortgage refi is more than just finding the lowest interest rates. You can further cut fees and costs through the structure of your loan, avoiding PMI, and buying lower interest rates.

Close Credit Card Accounts

Close inactive credit card accounts to improve your credit score, making you eligible for lower interest rate loans. You will need to notify the credit card companies in writing that you wish the accounts closed on your request.

Next, check your credit report after 30 days to be sure closed accounts include the comment “Closed at Customer’s Request.” You want future lenders to know it was your request and not bad credit that closed your accounts. Also, take the time to check for any mistakes in your credit report that could negatively impact your credit score.

Avoid The Hidden Cost Of PMI

When refinancing a mortgage, as many as 30% of homeowner’s cash out part or all of their home’s equity. By investing in home improvements or paying off credit cards, this can be a smart. But, if you are borrowing more than 80% of your home’s value, you will be hit with private mortgage insurance, costing you hundreds a year.

Pay Points Now

If you are planning to stay in your home for several years, then you can save money by paying points for lower interest rates. You pay up front fees to ensure you have lower interest payments over the course of your loan. Remember, this only works if you keep your mortgage for several months.

Choose A Short-Term Loan

Short-term mortgages offer lower interest rates than long-term mortgages. You save money by the lower interest rates and shorter payment period. The trade off is a larger monthly payment, but this option can save you thousands.

Ask About Fees

Fees are a hidden cost of many mortgage loans. By law, lenders must disclose fees within three days of a loan application. Fees can go by many names like – document prep fees, courier fees, administrative fees, and more.

When comparing refi options for your mortgage, request a list of fees from several lenders. Add these fees with the interest of a loan. With these figures, you may be surprised that the cheapest loan didn’t have the lowest interest rate.

To view our recommended sources for refinance mortgage loans online, visit
this page: Recommended
Refi Mortgage Lenders Online.

By: Carrie Reeder

Refinancing After Bankruptcy

admin — Thu, 08 Apr 2010 07:04:12 +0000

Refinancing after a bankruptcy can seem like an especially difficult challenge, but it doesn’t have to be. Six months after your bankruptcy has been finalized, you can find lenders willing to refinance your mortgage. In fact, refinancing your mortgage can help rebuild your credit to good standing in two year’s time. The following steps will help you find the best refinance lender while helping your rebuild your credit record.

Preparing For Refinancing

Right after bankruptcy, you have six months to prepare to refinance your mortgage. Begin by establishing good payment history by regularly paying your bills and current mortgage. This is also a good time to open a credit card account to start establishing good credit history.

If possible, also start building up a savings account. The more cash assets you have, the better your application will look. Consider having a garage sale or taking a second job to raise funds.

Researching Lenders

Once you are ready to refinance, research mortgage lenders and their rates. Online mortgage websites allow easy comparison shopping. Look at both interest rates and fees of refinancing quotes. Usually a slightly higher rate with low fees is the best deal.

With bankruptcy on your credit report, you will typically need to work with a sub prime lender. You can expect to pay a few percentage points above a traditional mortgage, which you can find through online mortgage companies.

Choosing Your Refinancing Package

You may be offered a chance to cash out part of your home’s equity when refinancing your mortgage. If you need to make home improvements or buy a car, this may be a good option. However, if you keep your home’s equity in place, you are improving your credit.

Once you have decided on your terms, you can finish your loan application online or through the mail. Quotes are not guaranteed, so rates may vary slightly once your application has been approved. Before the loan is finalized though you have the opportunity to review the loan again.

After Refinancing

With your refinancing completed, you can plan to lower your interest rates through refinancing in two years by building up your credit score. Continue to make regular payments and add to your cash reserves. Before you apply to refinance again, review your credit report to be sure your bankruptcy closed all past accounts on your record. With a solid credit history behind you, you can apply to traditional mortgage lenders.

To view our recommended sources for refinancing after a bankruptcy online, visit
this page: Recommended Bad Credit Mortgage Lenders Online.

By: Carrie Reeder

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

Online Bad Credit Home Loan Refinance – A Good Option For You

admin — Mon, 01 Mar 2010 20:44:12 +0000

It is difficult to get home loan refinance even for the people who have a good credit rating. In such a case, you can understand the situation in which the people with bad credit are to refinance their home loan.

However, there are many websites which provide bad credit home loan refinance without much problem. Few of them also take minimum time to grant you that loan. There are ways by which you can benefit while applying for bad credit home loan refinance. In this respect, the given below information can prove to be very useful.

Companies That Provide Bad Credit Home Loan Refinance

There are companies who try to help people with bad credit. Such companies have specialty in helping people who are in difficult financial conditions. They even offer them assistance in their debts.

What Kind of Lenders You Should Lookout For

You should avoid applying to any prime lender. They may charge you outrageous rates for home refinance loan due to your bad credit rating. So pick up a few sub prime or high risk lenders and apply them for your loan. You should study their loan terms and select the one that suits you best in terms of lowest interest rate and easy terms.

Be Aware Of The Cost and Fee

It is also necessary to get the details of the closing cost and fee of sub prime lenders. You may come across many lenders who are offering very low interest rates but if you read in depth their terms, then you will find that their additional cost and fee are very high. With marginal cost and fee on such loan, you can save thousands of dollars.

Apply The Loan With Confidence

If you approach the money lender with confidence without showing your desperation, he can consider your loan application positively. But if you show that you are desperate for loan, then you may fall into the trap of unscrupulous lenders who may try to take advantage of your desperation. Present yourself with confidence instead of desperation while applying for loan.

Period Of Repayment

It is generally found that home loan refinancing offers certain benefits to bad credit home owners. They can extend the repayment period of the loan.

Lowering Monthly Payment

If you are able to lower monthly repayment on your home refinance loan, then you can repair your credit with existing financial resources.

Improving Credit Rating

With careful decisions and planning, you can obtain home loan refinance in favorable terms. This will help you to make your monthly payment easily and on time every month. By honoring your commitment to repay on time, you will slowly improve your credit rating. Such high credit standing is beneficial for getting loan in easy terms.

With careful study of various ways given above, you can get your bad credit home refinance loan online in easier and favorable terms.

By: Alan Lim

Refinance Mortgage With Bad Credit History May Not Be Simple But It Is Possible

admin — Thu, 11 Feb 2010 08:08:08 +0000

If you want to get a refinance mortgage with bad credit history, you have to work quite hard. This is because of the simple reason that lenders will treat you as a risk and will not approve your application. Some lenders do approve loan application for people with bad credit history but they charges high interest rates. Don’t opt for these lenders because high interest rates will mean that your credit situation is not going to improve.

There is a wrong notion among few people that improving credit situation is impossible. As a matter of fact, if you are willing to show some discipline you can easily improve your credit situation. Once your credit situation improves, not only your application for refinance mortgage is going to be approved very quickly but also interest rates is going to be low.

To improve your credit situation, first and foremost always pay your dues on time. Secondly, open a saving bank account. The best part about opening a saving account in bank is that you can show the lender your bank statement with regard to your financial condition. If your saving account has decent amount of money in it, lender will approve your loan application almost immediately.

Some people commit a mistake of going for a refinance mortgage loan with high interest rates thinking that once they get a loan approval their credit situation is going to improve. This is wrong thinking because your credit rating is only going to improve when you get a loan on easy terms and conditions. In other words, loan that you can repay without any problem.

When you opt for a refinance mortgage loan with high interest rates, your credit rating is going to get worse because you are bound to face plenty of difficulties in repaying the loan amount. Once you miss one or two of your monthly installments, your credit situation is going to get worse. It’s better to avail loan whose monthly installments are set on the basis of your financial condition.

By: Sara Sentor

Buying a Car With Bad Credit – Auto Refinancing

admin — Sat, 06 Feb 2010 04:08:53 +0000

If your credit score is bad you are left with almost no options for getting a car loan and thus for buying a new car. Banks and other typical lending companies will refuse loans if your credit score is too low. Even if they offer you credit it will be with huge interest rates and the amount might not be enough to buy your dream car.

The good news is that you can make some steps and still get a new car with bad credit. the secret is in auto refinancing. Car refinancing works on the same principal as home refinancing but many people just doesn’t think of it.

The basic principle of car loan refinancing is to take a loan from a lender and than repay it by using the money from another lender who offered you lower interest rates. First of all your monthly payments will be much lower and second your interest rates drop so that you can pay off the balance of your car loan even quicker.

There are few principles to follow when looking for car loan refinancing. First of all remember that the lender who borrowed you the money for the car will probably not give you another credit to refinance the first. So you have to look for a different lender. The next very important thing is to be careful with the interest rate. The whole secret about refinancing car loans is to get the APR equation right. The interest rate of the refinancing loan must be lower than the interest rate of the original loan.

When applying for a car refinancing loan, follow these simple rules to achieve best results:

- The car refinance loan application need to be in the same name as the name on your current auto loan.

- Get your car loan account number ready

- Seek refinance if you have to pay $7500 or more

- Have your vehicle information accurate

- Do not ask for a car refinance loan that is higher than the value of the car.

- Check if there are some additional charges and fees applicable to your new loan.

If you are unable to find a typical bank or lending institution to give you an auto refinance loan, seek online. There are any online financial institutions that offer various types of loans or specialize in refinance. Their applications are online and usually give quick answers.

By: Keith Londrie

Bad Credit Refinance Options

admin — Wed, 25 Nov 2009 07:10:06 +0000

Benefit

Refinance opportunities for people with challenging credit come in two main areas:

mortgage lendershard money lenders New Loan Options One of the most critical factors helping someone with bad credit is equity in the property.

If there is enough equity in a property then lenders will look much more favorably on a borrower with bad credit. For example. if the property is worth $300,000 and the mortgage is for $150,000 the borrower will have many lenders looking at their loan favorably.

Some lenders have not required a credit score if there is enough equity in a property (this is when a person owns more than 40% of the value of the property).

Hard Money Lenders

Hard money lenders offer loans for people who can’t be approved by regular lenders. People turn to hard money lenders because of the speed of their decisions and their flexibility. They can look beyond credit situations and look at the bigger picture. Hard money lenders usually also require a lot of equity.

Co-Borrowers

Some borrowers choose to include a new co-borrower on their application who has a higher credit rating. A borrower who is on a loan application but who does not live in the property is known as a “non-resident co borrower”. Some lenders allow this, and some lenders will not. It also depends on what type of loan the borrower is looking for.

Often times a lender will figure out a borrower’s debt burden after their credit card and other debt is paid off through a refinance.

By: Ben Afzal

Bad Credit Refinance Loans – Refinancing With A Low FICO Credit Score

admin — Thu, 19 Nov 2009 21:20:30 +0000

Your financial situation may have changed for the worse since you first purchased your home. You may have had a great credit score, above 700 but now you find yourself with a low FICO score below 640 (be it 450, 500, 550, 600 or 620).

You need to refinance your existing mortgage loan to take cash out of your home for a home improvement project, credit card debt consolidation or other purposes. The big question is “can you get a mortgage refinance loan with a low credit score?

The answer is “yes”.

Contrary to popular belief, life doesn’t end, when your credit score dips below the magic 670 number. Yes – it is a true that a person with a credit score above 670 will find it easier to get a mortgage refinance loan than a person with a low credit score – but this is doesn’t mean that you cannot find a loan.

How to find a poor credit refinance loan
1. The key to finding a lender, who specializes in low credit score refinance loans is to do your research. The power of the internet cannot be underestimated, when it comes to shopping for a poor credit refinance lender.

2. Once you find a lender, ensure that you complete their application form, thoroughly. Remember that you are competing with other applicants, who have excellent credit scores. Leave nothing to chance.

3. Be truthful on your loan application. Don’t indicate a “fair” credit rating (620 and above), when you have a “poor” credit rating (any credit score below 600). A lender who specializes in low credit score loans is used to working with consumers with all credit scores and will not turn you down immediately, upon seeing a credit score like 500. Other details on your application form, will factor into the lender’s final approval decision.

By: Sharon Listner