Bad Credit Mortgage Refinance – Bank Mortgage Rates Dropping?
Posted on | September 29, 2009 | No Comments
Getting a bad credit mortgage refinance is something that many Americans are trying to do in the current economic environment. Many banks are advertising mortgage rates that are very close to historic lows. It is hard to do any home or mortgage search without seeing ads that show mortgage rates well below 5%. If you are a bad credit borrower it is unlikely that you will have access to these rates but you can still benefit by refinancing.
Bank of America and Wells Fargo have both been advertising their home loan divisions very hard. Each bank has struggled greatly through the credit crisis and it will be interesting to see if their advertising efforts pay off in the long run. These two banks saw huge huge losses due to subprime borrowers so if you have bad credit you might find that it is harder to get a low mortgage rate today.
One of the best things you can do to help your refinancing chances is to improve your credit score. To improve your credit score you will first need to find out what your credit score is. I would suggest actually buying a FICO score from Experian.com as they will give you all of the information that you need to know. The credit report will explain all the lines of credit that are reporting you to these companies. If there are any inaccuracies you should be able to notice these on your FICO report.
Once you look over your credit report and get rid of all inaccuracies you can then decide what lines of credit to attack first. To help your credit score, it is advisable to lower some of the balances on lines of credit that are very close to being maxxed out. This is not the strategy that many people will use but it will help you to increase your credit score over a short period of time.
If you have a longer period of time it is best to pay off the lowest balances and put this money towards the next lower balance. The problem with this strategy is that your highest balance lines of credit are going to be the last ones to get paid off and they will be a liability the longest. If your goal is to increase your credit score you should attack these lines of credit to at least lower them from their max.
Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below. We offer information on everything from getting a lower mortgage rate to increasing your credit score.
Author: Alan Lake
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