Bad Credit
Mortgage Refinance
Finding a
good lender to help you with refinancing your home loan can be tricky especially if you are
looking for a bad credit
mortgage
refinance. There are a lot of predatory lenders out there who
would like to take advantage of you with excessively high interest rates and
fees. The key to finding a good lender is to know what are reasonable terms and
to compare lending companies.
Look at your mortgage history
Even if you don't pay your bills on time all hope is not
lost you still can refinance your mortgage with bad credit. If you have been
paying your mortgage on time you might qualify for what is called a streamline
refinance. The lender could possibly be able to put a lot of weight on your
current mortgage history using this option.
As a bonus most companies will not penalize you for your
first payment that is over 30 days late. Have two or three late payments over 30
days you can still get it done although you will most likely take a rate hit. If
you are over 4 times late in a two year period your in for a real battle to get
a competitive - to even decent rate, and unfortunately you might have to wait a
while for some of your excessive late payments to fall off of your credit
report.
Your payment should not be counted as late unless you
pay over 30 days after your due date. If you are in trouble start by checking
your bank records thoroughly for checks that might have cleared before they were
posted to your account. Or just flat out request that the lender does not count
an item that was 31-35 days late.
You might not be able to get them to see it your way
however, if you don't request them to review it your not going to be able
to get it for sure. If you are not happy with the response your getting from one
person call back in a day or so and try it again with a little persistence your
likely to find some one to assist you in resolving your problem.
Look At Your credit
Report
Credit
records are not perfect accounts. Before you apply to refinance your loan, you
should check to see that all your information is correct. If you believe there
is a false record, resolve it with the credit reporting company.
You also want to know what your credit score is. The lower the score the higher
rate you will have to pay, but at least you will have an idea of what to expect
from a lender. Paying three to five additional points is common for people with
bad credit history.
Look For A good Deal
Mortgage
lenders increase their profits by pushing loans with high interest rates and
points. Some lenders will push these types of loans even if they aren't best for
you, so beware of fast-talking dealers. Be sure to read the terms and look for
hidden fees before you sign the paperwork.
Online mortgage companies eliminate some of this risk of refinancing with bad
credit by requiring mortgage lenders to state their terms online. Online quotes
are also more competitive since lenders know you are probably shopping around to
refinance your loan. Once you have an offer, print out the terms for your
records.
Mortgage Glossary9
