Bad Credit Mortgage Refinance – Will Mortgage Rates Drop?
Posted on | August 27, 2009 | 3 Comments
Getting a bad credit mortgage refinance is something many home owners have had to do over the last few years. Mortgage rates have continued to drop over this period of time but so have the amount of money in the bank accounts of most citizens. After the fall of the housing market starting in July of 2006, home owners and all Americans have seen their credit scores greatly decline. The average credit score has dropped almost every single month since the beginning of 2007. With this being the case, there are many bad credit borrowers out there that are seeking advice on getting a bad credit refinance.
Luckily, mortgage rates have been at historical lows over the last few months so getting that bad credit mortgage refinance is not as hard as it would be if interest rates were high. Having bad credit, you are likely to get a much higher mortgage rate than the average rate. The good thing is that when this average rate goes down, so does your bad credit mortgage rate. All home owners and future home owners should continue to wish for lower mortgage rates so they can refinance and get more money in their pockets.
One of the good things about this global recession is that the consumer can be very picky with who they chose to do business with. There are many mortgage lenders out there vying for your business so you have the chance to pick and choose who you want to work with. If mortgage lender A offers you 9% with very low fees and mortgage lender B offers you 9.5% with high fees, it would be smart to tell mortgage lender B that you have a much better offer and if they cannot come down you will walk out the door.
Having the ability to walk out the door is very important when it comes to finances. It is very similar to buying a car. If you have the ability to walk away, you are likely to get a much better deal in the long run. Even if you don’t have this option, it might be worth it to try it once just to see if you can get the bad credit mortgage lender to give you a much better offer. You will never truly know until you give it a try.
Overall, this is one of the best times in the history of the United States to refinance or buy your first home. Mortgage rates are near historic lows and there are many incentives out there that can add up to quite a bit of money. It is not difficult to find mortgage lenders that are offering low mortgage rates as there are ads all over the Internet and television. It is up to you to get out there and see if you can get a low mortgage rate.
Author: Alan Lake
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3 Responses to “Bad Credit Mortgage Refinance – Will Mortgage Rates Drop?”
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August 27th, 2009 @ 3:37 pm
[...] now is a great time to refinance or get a home loan because mortgage rates are at historic lows and lenders are actually lending [...]
August 27th, 2009 @ 9:08 pm
My Self Pamela working as a consultant with CarLoans1 Refinancing Company. Car Loans Refinancing Best Way to Cut Down Your Monthly Installments. Do not spend extra money that you should not have to! Spend just a little extra time to do some research, and compare rates that several different companies are offering you. This will ensure that you save as much money as possible on the lowest auto loan interest rate for that new car purchase you are planning to make.
September 2nd, 2009 @ 9:56 pm
I own a condo and have an outstanding balance of $140k, consisting of $104k primary and $36k secondary. I took the home equity to consolidate debts. At the time the property was valued at $163k but now it is valued at $134k. I’m looking to sell because i am engaged and will be moving into my fiancee’s home. Check http://www.obamamortgagerelief.org/. If I have a buyer who offers me within say $5-7k of the outstanding, can i agree to assume a loan on the residual and pay the bank the difference over time with interest? The same bank holds both mortgages.