Bad Credit Mortgage Refinance – Low or Bad Credit Score Refinancing
Posted on | December 28, 2009 | No Comments
Going through the bad credit mortgage refinance process is something that many Americans are going to do in 2010. If you have a low or bad credit score and you are looking to refinance than you need to consider your options. Many lenders out there are proving to be a great struggle when it comes to refinancing if you are underwater in your home and you have a very low or bad credit score.
If this is the case for you then you will need to do your research on some bad credit lenders that can help you with the bad credit mortgage refinance process. Many readers of Subprime Blogger have stated that several major mortgage lenders have turned away when it comes to refinancing a home that is underwater. No matter what their credit score was the lenders were not willing to refinance the home at a reasonable rate because of the financial situation.
If you have a very low or bad credit score you are going to find that the interest-rate on your refinance is not as low as the advertised rate you have seen. The current average mortgage refinance rate is around 5% but this is only for the borrowers who have equity in their home and a very good credit score. If you have seen your credit score drop below 650 then you can expect a much higher interest rate on your mortgage refinance.
Even through a lender that specializes in bad credit assistance you will find that your interest rate will likely be higher if you have a bad credit score. If you are hoping to refinance in the next few months it will be very difficult to increase your credit score a significant amount. It usually takes several months and possibly even several years to increase your credit score significantly.
It is extremely important to do your research and find out exactly what your credit score is before you make any assumptions. It is well worth paying the $20 to see how much your credit score has changed over the last six months to one year. You can then make deductions as to what interest rate you will get from your credit report.
Author: Mike Garner
Comments
Leave a Reply