Tips on How to Get a Bad Credit Refinance Mortgage
A bad credit refinance mortgage can help you to reduce your monthly loan payments. It can also help you to raise money against the equity you have in your home. You can qualify for refinancing even if you have a low credit score, but you will not be eligible for the lowest interest rates. Want to get free, no-obligation quotes from the top bad credit mortgage lenders now?
Assess your financial situation
Consider your financial health and decide about whether getting a bad credit mortgage refinance loan makes sense for you. Get a free copy of your credit report and check your credit score. If you find any mistakes in your report, you can dispute them and have them set right. If your credit score is very low, focus on improving it before you apply for refinancing.
Lenders will offer better rates if you have a steady source of income and have liquid assets. Refinancing will be easier if you have established equity in your home. Do the math and consider the costs and benefits before you make up your mind. An online mortgage calculator will make it much easier for you to decide about whether refinancing makes sense for you. You will find an online calculator on the websites of most lenders.
Focus on improving your credit score
If you are able to improve your credit score, you will be able to qualify for mortgage refinancing loans with much lower interest rates. A lower interest rate can help you to save thousands of dollars over the term of the loan.
Pay all your bills promptly and try to repay your existing debts. Be cautious about taking on additional debt. Use only about a third of your available credit card limit and try to pay the entire balance every month. A low debt-to-income ratio will help you to improve your credit rating.
Find out about government programs
Check to see if you are eligible for government programs meant for people facing mortgage repayment problems and those whose homes are worth less than what they owe on their mortgages. Programs like the Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP) can help you to get lower mortgage rates and more affordable monthly payments.
Shop around for the best offers
Explore your options online and compare offers from different lenders before you apply for mortgage refinance with bad credit. Lenders offer loans with different rates and fees to applicants with the same qualifications, so negotiate hard to get a better deal.
Contact a few reputable lenders and ask them to provide offers in writing for the same type of loan. Take notes to avoid forgetting important details. Read the fine print carefully and check for hidden costs. Browse through online reviews to assess the reputation of the lenders. Get free, no-obligation quotes from the leading bad credit refinance mortgage lenders now.