Bad Credit Mortgage Refinance – Can I Get a Low Mortgage Rate?
Posted on | August 18, 2009 | No Comments
Getting a bad credit mortgage refinance is being done an awful lot these days as many Americans have seen their credit score drop greatly. With the unemployment rate continuing to rise and pay cuts happening what seems like every single day, there is much less money in the pockets of most common Americans. With this being the case, home owners want to do all they can to save an extra buck or two. One way to do this is to get a bad credit mortgage refinance.
Many people ask “Can I get a low mortgage rate” on a bad credit mortgage refinance. Well, that is all determine by what you consider a low mortgage rate. If you think a mortgage rate is anything below 6% then the answer is no, you cannot get a low mortgage rate with a bad credit mortgage refinance. If you think a low mortgage rate is 12% then it is quite possible that you will be able to get a mortgage rate below this range.
While that may sound high, you must realize that mortgage lenders consider you very risky if you have bad credit. There have been over 350 mortgage companies that have closed their doors because they had so many home loans default. The lenders that are still standing have this recent memory in their minds when they decide on your mortgage rate. If they think you are a high risk to default, they are going to slap you with an extremely high mortgage rate so they can make their money back in some way.
This should not deter you from trying to get a bad credit mortgage refinance. If your current mortgage rate is higher than you think it should be, it is likely you can get it lowered by refinancing. President Obama and his staff have worked very hard to make sure interest rates have stayed at a historically low level. You should take advantage of this by at least testing the waters and seeing what mortgage lenders can do for you.
You have likely seen advertisements for low mortgage rate bad credit refinancing. It would not hurt to give these companies a call and see what they can do for you. With the economy in horrible shape, they may be willing to bend the rules a little bit just to get a new customer. Keep an eye on the fees though because that is where some mortgage lenders make a ton of money and end up taking more then necessary.
Author: Jeremy North
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