Bad Credit Mortgage Refinance – Low Mortgage Rates in Phoenix, Arizona?
Posted on | December 18, 2009 | 2 Comments
Many bad credit borrowers will be looking to refinance in 2010. If you are looking to go through the bad credit mortgage refinance process in Phoenix, Arizona there are many options available for you. If you are truly a bad credit borrower then getting a very low mortgage rate might not be one of those options. It is important to know that you must have equity in your home and a very good credit score to get the low mortgage rates you see advertised today.
The housing market in Phoenix, Arizona has seen a huge decline over the last few years. Since the July 2006 top many homes in Phoenix have seen a price drop of over 50%. This price drop has caused many homeowners to see the value of their home move to underwater status. If you are currently underwater on your home mortgage then you are going to find it impossible to refinance to a low rate.
Even if you cannot refinance your current home loan there are options available for you. One option is to go through the home loan modification process. If you are paying more than 31% of your monthly income on your mortgage you can modify it to a lower overall payment. This process is not extremely easy so you need to be willing to take the necessary steps to get it completed.
One of the reasons that many home loan modifications have not been completed is because the amount of paperwork that must be submitted. After you have gotten into the trial period of the modification you will then have to submit paperwork for up to six months to get your mortgage permanently modified. This is where most homeowners are finding the greatest struggles.
Just because you do not have a great credit score and you do not have a lot of equity in your home does not mean that you cannot lower your monthly mortgage payments. By going through the home loan modification process you are likely to find lower monthly mortgage payments but this will come with a lot of effort. If you do not put forth the effort you are going to find that these modifications will not be permanent.
Author: Alan Lake
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2 Responses to “Bad Credit Mortgage Refinance – Low Mortgage Rates in Phoenix, Arizona?”
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December 18th, 2009 @ 12:48 pm
We here at Lighthouse Capital Resources will get you the best modification here in AZ possible or your money back. Call (480) 272-8368 for more information.
December 18th, 2009 @ 3:23 pm
Even if we have great credit scores, if we are underwater, the mortgage companies don’t want to hear it. In 2004, I obtained a oan, the lender advise me a first and second mortgage would be best. Now they won’t even consider the second mortgage as part of the modification qualifying. What am I to do when the adjustable amount will exceed my income. Or I will have to exhaust all my 401k retirement savings to save my house. NOT!