Bad Credit Mortgage Refinance – Get a Low Refinance Rate in December
Posted on | December 11, 2009 | 1 Comment
Going through the bad credit mortgage refinance process is something that many bad credit borrowers are likely to do in 2010. If you want to stay ahead of the boat you might think about getting a lower refinance rate in December before the swell of refinance applications come in in January. Every January there is a great increase in the amount of applications for refinance and you might not want to be on the bottom of the stack.
If you have extremely bad credit and very little equity in your home you are likely going to find it difficult to get a low refinance rate. Currently we are seeing the conventional 30 year fixed mortgage rate around 4.7% but if you have bad credit you can not bank on getting this type of low rate. With your bad credit and little equity in your home you are much likely to get a higher mortgage interest rate on your home loan.
Just because you can not get the low advertised rates does not mean that you should not go to the mortgage or refinance process. If you can save one full percentage point on your home loan then you should likely go through the mortgage refinance process. By saving one full percentage point you will pay for the cost of the refinance plus save money in the long run by lowering your monthly mortgage payments.
The only way you’ll know what mortgage interest rate you qualify for is to actually submit a mortgage refinance application. This application is not a very swift process so please know that it may take you a few days to fill it out. It will probably be a good idea to go ahead and get this done in December rather than waiting for January when all of the other homeowners are looking to refinance to a lower mortgage interest rate.
With any major financial decision in your life it is extremely important for you to do a great amount of research. If you jump in head first you may make the wrong decision and it might end up costing you in the long run. Just because mortgage interest rates are low does not mean that it is the right time for you to refinance. Look at your current situation and decide what is right for you.
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Author: Mike Garner
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One Response to “Bad Credit Mortgage Refinance – Get a Low Refinance Rate in December”
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December 11th, 2009 @ 9:37 pm
Keeping an eye on the closing costs is very important. If it takes you more than a year to recoup you costs the value of the refinance needs to be considered.