Bad credit refinancing » Sub Prime Mortgage

VA Streamline Refinance Has Hidden Benefits

admin — Thu, 10 Jun 2010 18:49:12 +0000

Very few veterans know about the benefits of a VA Streamline mortgage refinance. There are a few benefits that are hidden to vets. One of the biggest is that with a VA Streamline refi there are no credit qualifications! You can have multiple late payments and collections on all types of credit and still qualify. The only exceptions to that are judgements and liens that are attached to the property. they would have to be paid through the refi but you can still move forward with the refinance. This is a huge benefit to veterans who may have had credit problems and would other wise have to choose a sub-prime mortgage in a refinance transaction.

Knowing this one fact can save you thousands on your mortgage over the life of the loan and hundreds of dollars per month. sub-prime mortgages also generally have an adjustable aspect to the interest rate so it is much better to use VA benefits to get into a fixed rate va loan at a much lower interest rate. Interest rates on VA loans can be as much as 8% lower than than rates on sub-prime mortgages.

The only credit qualifications involved with a VA Streamline Refinance are that you cannot have more than one 30 day plus late payment on the mortgage in the most recent 12 months. That is it!! These are very easy loans to complete and the majority of veterans qualify. Even if you have had a foreclosure on a different property six months ago you can still qualify.

To learn more about VA Streamline Refinance loans, please feel free to visit:

By: Chad Childress

Bad Credit Mortgage Refinance

admin — Sat, 20 Mar 2010 05:52:55 +0000

With todays aggressive mortgage lending market home owners with bad credit scores and late mortgage payments can still qualify for a bad credit mortgage refinance. Mortgage lenders who write these types of bad credit mortgage refinance loans are referred to as sub prime lenders and are mainly sold by mortgage brokers. Credit scores for sub prime mortgages are usually between 500 and 620.

Although borrowers with mid 500 credit scores and above should try and qualify for FHA financing before accepting a sub prime loan. There are drawbacks to a bad credit mortgage refinance, Sub prime mortgage loans carry with them a higher interest rate and many times a prepayment penalty. Although a small disadvantage to someone who needs the loan they should be taken into consideration.

Many bad credit mortgage refinances are originated in the form of a 2 year ARM. An ARM has an interest rate that will change in a certain period of time meaning higher payments. That time is 2 years for the 2 year ARM, Sub prime ARMS are available in 2,3 and 5 year periods. The ARM is not the only option for a bad credit refinance, you do have the option of going with a fixed rate mortgage but be ready for a interest rate that is .75% or more higher then the ARM rate. In general the sub prime mortgage loan is considered but many to be just a band aid type loan meant to carry you along until you can raise your credit score up enough to get a conforming loan. If you must take the ARM over the fixed mortgage do yourself a favor and take the 5 year ARM. It will give you much more time to straighten out your credit profile.

By: Darin Sewell

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

Bad Credit Refinance – How You Can Do It

admin — Tue, 16 Feb 2010 04:18:04 +0000

As shivers go through the sub-prime mortgage industry, you may think that, because you have bad credit, your ability to refinance your mortgage is in jeopardy. To an extent, you may be right. Mortgage lenders are re-evaluating their loan portfolios and taking a good look at the qualifications and credit scores of prospective borrowers. Some lenders are getting out of the sub-prime market altogether. But hold on just a second, all is not lost.

Some lenders are exiting the market by choice, while others are being forced out due to the sheer weight of the bad loans they’re now carrying. About 100 mortgage lenders that catered primarily to the sub-prime section of the market went out of business between the last quarter of 2006 and mid 2007. That means that your options, if you’re a sub-prime borrower, are becoming more limited.

You still have options when it comes to refinancing however. Because of the recent turmoil, be prepared to pay a higher interest rate than you would have had to pay even 6 months ago. For that matter, even borrowers with fairly good credit are finding their options more limited and paying higher interest rates that they were at the beginning of 2007. Thankfully you aren’t in the same position when refinancing a mortgage as when trying the same tactic with credit cards or revolving accounts. That’s because a mortgage is a secured loan, where a credit represents unsecured debt. Obviously a lender faces less risk of default when their loan is secured in some fashion.

You may want to improve your mortgage interest rate because rates have dropped since you got your mortgage, or you have an ARM or interest only mortgage that’s about to adjust. Whatever your reasons for wanting to refinance, even if you have pretty bad credit, you can usually have your mortgage refinanced and get lower monthly payments in the process.

You can possibly get some cash out too, by getting what’s termed a “cash out” refinance. You’ll get to tap some of the equity in your home that’s currently just sitting there and not working for you. If you need money to pay off medical, home or car repair bills, using the equity in your home is usually a better option that a credit card. Because it is a secured loan, you’ll get a much better interest rate. In addition you can often use the interest you do pay as a tax deduction.

It’s also a great way to get capital for investment, such as the down payment on a rental property. This way you can take advantage of the proven wealth producing principal of leverage. Be aware however, that although real estate secured loans are typically at comparatively low interest rates, you need to be confident of an investment return that will comfortably exceed your mortgage interest rate. If it does not, you better think twice before you use cash out refinance proceeds for investment purposes.

How can you go about refinancing your mortgage, credit rating be damned? There are several avenues to explore. You can check the rate and fees charged by your local bank, although in many cases you’ll be able to do better with other lenders. Possibly a better choice is a credit union, if you happen to be a member. Many credit unions are non profit, returning profits to the members in the form of better interest rates and lower fees. In many cases your best bet will be through a mortgage broker, either local or one of the on-line offerings. A broker will have many different mortgage products to choose from and is in many cases better able to find the right product for you than a loan officer that is limited to a single company’s products. If you prefer to work with someone local whom you can meet face to face, a local broker may appeal to you.

An option that has become extremely popular to help borrowers with marginal credit refinance mortgages are online referral services. The online mortgage referral services allow many different lenders to actually bid for your mortgage business. The known competitive bidding situation helps generate better rate and fee structures for conumers. Some of the lenders are very aggressive, which is part of the reason the sub-prime mortgage market is in so much trouble today. That is good for you if you have bad or marginal credit though. The more lenders you’re exposed to, the better your chances of finding a mortgage product that fits your needs and budget.

The bottom line is that, since your mortgage is secured by the equity in your home, there’s a great chance you can enjoy refinancing. If you have any equity to use as collateral you will probably be well on your way to the refinance you’re looking for. The next step is to actually start looking.

By: Steve Faber

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 Refinance Advice

admin — Sun, 17 Jan 2010 04:25:13 +0000

Bad credit mortgage refinance is not as hard to get as it may seem. Here, I will provide information for homeowners which will help them get approved for a mortgage refinancing, even with bad credit.

Having not good credit is not the end of your mortgage refinancing ideas. There are a number of mortgage lenders and banks who will be more than happy to assist you when your looking to change your monthly payments, change interest rates, or change terms and conditions of the home loan, or even get a cash back, through refinancing.

What a Bad Credit Mortgage Refinance will mean for you.

Having less than desirable credit does not automatically mean that you will not get approved for a mortgage refinancing, but it does mean that you will pay a higher interest rate than someone who has good, or better credit than you. Simply, the worse your credit is, the higher your interest rate will be. It is always a good decision to do some small things in an attempt to improve your credit rating prior to applying for a refinancing.

Applying for a Bad Credit Loan.

Homeowners who want to get a bad credit mortgage refinance may need to work with a sub prime mortgage lender. Most of these companies are reputable, and upstanding companies, but you will always want to do your own research and comparison shop around. The last thing that you should have to do is go through more financial problems in the future, after refinancing.

Post Mortgage Refinancing

Typically homeowner who refinance with a low credit rating get a higher interest rate than they could have had. If this applies to your situation, wait for a year or two until your credit regains its strength and refinance again.

By: Michael Petrone

Bad Credit Mortgage Refinancing and Modification Help

admin — Sun, 13 Dec 2009 12:18:19 +0000

Homeowners with bad credit can now easily get a mortgage refinancing or modification. The “Making Home Affordable” plan targets homeowners in bad financial situations, and offers them a more affordable mortgage through refinancing or modification. Here is how homeowners with bad credit can get approved for refinancing or mortgage modification:

Right now, this mortgage bailout plan from President Obama will help millions of homeowners get the help they need to save their home, or a whole lot of money. New guidelines for mortgage refinancing or modification make getting approved with a poor credit rating easier than ever. Now, homeowners in all types of bad financial situations can get help.

Refinancing and modification is easier for many people than ever before. Here are some homeowners who can now get the help they need:

- Homeowners who are stuck in bad mortgages

- Homeowners who have lost a job

- Peoples who have been getting reduced wages

- Owners who have lost value in their homeowners

- Homeowners with bad credit

Typically, this group of homeowners would need either a mortgage broker, or sub prime mortgage, to get approved for refinancing. Now though, things have changed. These changes are for the benefit of the homeowner, as now getting help is easier than ever before.

Bad credit mortgage refinancing is not hard to get, even in this bad market. Right now, mortgage lenders and banks are doing everything they can to help homeowners. This means that homeowners with bad finances are now much more easy able to get the help they need.

Take action now, even if you ave bad credit. It is the best time ever to need help if your credit rating is bad, take advantage.

By: Michael Petrone