Bad Credit Mortgage Refinance – 15 Year Fixed Mortgage Rates at 4.25%
Posted on | January 29, 2010 | No Comments
If you are looking to complete the bad credit mortgage refinance process then you will need to select a lender that can offer you attractive interest rates. At the present time the 30 year fixed mortgage rate is around 4.85% while the 15 year fixed mortgage rate is around 4.25%. It is important to understand that these interest rates are conventional mortgage rates that are available to borrowers with good credit.
If you have a credit score that is well below 740 and you do not have a significant amount of equity in your home you are going to find it extremely difficult to get interest rates around this level. If the opposite is true and you have a very good credit score that is above 740 and you have a great amount of equity in your home there is no reason that you should not qualify for these interest rates.
By having bad credit you limit your options when it comes to refinancing. One general rule of thumb is that you must save one full percentage point to save money by refinancing. If you do not save this one full percentage point you are going to find out that the closing costs are going to end up costing you more than the savings you will see.
The only way you’ll know what interest rate you qualify for is to go through the mortgage refinance application process. Once you complete the application you will know with 100% accuracy what mortgage rate you qualify for. You can then better determine how much you will save by refinancing.
Author: Alan Lake
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