Bad Credit Mortgage Refinance – Rates Attractive in December and January
Posted on | December 21, 2009 | 1 Comment
Going through the bad credit mortgage refinance process is something that many homeowners plan to do in 2010. At the present time mortgage interest rates are very attractive in December. It will be interesting to see where these interest rates go in January but there is a very good possibility they will remain at extremely low levels. At the present time the 30 year fixed mortgage rate is around 4.75%.
If you have bad credit and you are underwater on your mortgage then you are not going to get a mortgage interest rate this low. It is very important that you understand this before going into the refinance process. It might be a very smart decision to get an appraisal and a credit score before you feel that you should go through the entire mortgage refinance process.
If you find that your credit score well below 650 then it is going to be very hard to get those advertised low mortgage interest rates. To get interest rates this low you will need to have a significant amount of equity in your home and a credit score well above 740. If you are in the in between range of 650 to 740 other factors will be very important including how many payments you have missed on bills.
There are many bad credit lenders out there who will greatly assist you in going through the bad credit mortgage refinance process. The only way that you should continue through the entire process is if you know you will save one full percentage point on your home loan rate. If you will not save a full percentage point you are going to end up spending more on refinance costs then you will save on your monthly mortgage payment.
It might be a good idea to sit down with a spreadsheet and document the amount of money you plan to save by going to the refinance process. Make sure to think about the amount of money you could be paying on refinance costs as well. Many homeowners do not think about this as they just want to get the lowest interest rate possible; refinance costs play a big part in this process.
Author: Alan Lake
Comments
One Response to “Bad Credit Mortgage Refinance – Rates Attractive in December and January”
Leave a Reply
January 5th, 2010 @ 6:13 am
[...] regards to those with an underwater mortgage seeking this 30-year fixed rate, an article about mortgage refinancing on subprimeblogger says: “If you have bad credit and you are underwater on your mortgage then you are not going to [...]