Bad Credit Home Loans – What Mortgage Rate Can I Get?
Posted on | August 27, 2009 | No Comments
Bad credit home loans are often frowned upon by many borrowers because they think they are going to get a very high mortgage rate. Well, it is highly likely that you are not going to get the low advertised mortgage rates that prime borrowers are going to get, but you might be surprised as what mortgage interest rate you can get with a little be of negotiating. In the current economy, mortgage lenders are doing whatever it takes just to stay in business so you might actually have the upper hand as a borrower.
There is little doubt that you are going to have trouble getting a low mortgage rate as a bad credit borrower but things have changed a little bit in the last few months. Prior to March of 2009, mortgage lenders and financial institutions were very stingy with who they would lend money to. The lingering thoughts of the subprime mortgage crisis were in the back of their minds and they were not willing to risk any of their capital on an individual who might default on their loan; especially a bad credit borrower.
In March, President Obama and his staff created a plan to get lenders to start “lending” again. The plan offered incentives to banks and lenders to lend money at low interest rates. Once again, not everyone is going to have access to these low rates, but you will never know unless you try. Since that time, lenders have actually been lending much more than the very troubling time between October of 2008 and March of 2009.
With this being the case, it would behoove you, as a bad credit borrower, to get out there and see what mortgage rate you can get. Each situation is different so there is no way to determine what mortgage rate each person will get. There are many advertisements on the Internet and television for bad credit mortgages so feel free to contact these companies. Most of them are just a phone call away and you always have the opportunity to just hang up the phone at any time if you do not think they are willing to work with you.
Right now is a great time to refinance or get a home loan because mortgage rates are at historic lows and lenders are actually lending money. If you have been thinking about this process, it might be a wise decision to go ahead and get started before mortgage rates start heading higher; we never know when these low mortgage rates will be gone forever.
Author: Jeremy North
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