Refinancing A New Mortgage With Bad Credit

I was unaware of my options at the time until I found the right help. Like many homeowners out there I was really struggling to make monthly mortgage payments. Money had gotten really tight and there just wasn't as much work out there for me to help bring in an income to support my family. We were down to feeding ourselves, paying the utility bill and shopping at the local thrift store for clothes. It was not a glamorous time in the Johnson household. However, once I learned about mortgage refinancing with bad credit I discovered that I could avert any foreclosure crisis well in advance.

How Refinancing worked for me

Refinancing essentially means paying off an existing loan with a new loan. For years I had avoided looking into more loans because it meant more debt and I was having enough trouble keeping a roof over our heads. However refinancing your mortgage with bad credit means lower monthly payments than the original mortgage. Either the interest rate is lower or there’s a longer repayment term. There are many reasons people like myself should consider refinanced mortgage rates with bad credit.

• You can refinance in order to get cash from the equity you have invested in your home.
• A refinance allows fixed as well as adjustable rate loans.
• You might be able to refinance up to 135% of the appraisal value of your home.
• Many lending companies will overlook credit scores and won’t require a down payment.
• There is typically a lower interest rate involved as well as an extended repayment term with no hidden fees.

I decided to go ahead with the refinance in order to increase the term of my new loan to suit my financial ability to actually pay off my debt. Because I originally signed an adjustable rate mortgage the interest rates had pushed the monthly payments into a repayment plan that was beyond my means. By refinancing I created a plan with my lender that made these payments much easier. Now I could enjoy a life not entirely devoted to paying a mortgage and avoiding foreclosure. Maybe my family could afford some brand new clothes instead of hand me downs.

Veteran refinancing options

A friend of mine also refinanced recently and told me that because he had served in the military he was awarded some help from the government. Veteran refinance mortgage rates are loans available through the federal governments to help veterans of the armed forces own homes. If you are a service member, be sure to explore your options before refinancing.

Is it the right time?

Before anyone decides to do what I did make sure you can actually afford to make a refinance. You have an opportunity to get several quotes from lending companies if you feel your income could support taking on another loan. Look over your debt to income ratio very carefully. Are you in any danger of unemployment in the foreseeable future? Are there looming medical expenses or tuition's that will further tax your bank accounts? Lending companies are careful with their money even if they don’t do a credit check, and they will have guidelines you must meet.

To learn more about the options available to you to refinance your mortgage rates with bad credit or about home-ownership in general, visit www.real-estate-yogi.com or call to speak with an agent directly at 1-800-987-1397.