No Credit Mortgage – What Rate Will You Get?
Posted on | July 23, 2009 | No Comments
Please use Subprime Blogger to get your mortgage rates forecast. The forecast is updated each Monday, Wednesday and Friday.
When getting a no credit mortgage, home buyers are sometimes susceptible to accepting whatever mortgage rate is thrown at them. By having no credit, many lenders take this as a risky borrower. This group of home buyers is often recent college and high school graduates who want to buy a home as soon as they are out on there on. If they have never had a credit card or made any type of monthly payments, they will not have a legitimate credit score. With no credit score lenders are going to push your mortgage rate much higher.
Sadly, a no credit mortgage is very similar to a subprime mortgage in that the lender has every reason to believe that there is a very good chance that you could default on your payments. This may not be the case, but there is no credit history to prove otherwise. If you must have a home right now, you are going to pay a much higher mortgage rate for this reason. Do not be surprised at all if that mortgage rate is in the double digits. It is very similar to the college student who gets their first credit card. The interest rate is likely to be astronomical because of their bleak credit history.
There are several options when it comes to getting a no credit mortgage. There are many advertisements throughout the Internet that offer advice and will go through the process with you. Some of the advertisers actually have an 800 number that you can call and speak with a consultant. I would not take everything they say as gospel as they are trying to make money, but it is good to at least talk with someone who has some knowledge.
Ultimately, you need to educate yourself on your options before making a final decision. Do not let a lender or anyone else talk you into something you are not comfortable with. Your mortgage will be one of the biggest financial commitments you make in your life, so make it a good decision.
Please check out the daily Subprime Blogger Rant; today I addressed the Health Care Bill:
To offset the 8% tax on payroll from the Health Care Bill, what do you think small businesses are going to do…..CUT PAYROLL! Great, more job cuts from small businesses, sounds like a great plan!
Please read the entire article here: Health Care Bill Will Further Ruin Our Economy!
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