The past few years have been hard on homeowners. If your finances are on shaky ground and your credit score is bad you are not alone. Nearly a quarter of all Americans have a poor credit score. That is a large population of people who are struggling with their debt. That is also a huge demographic that many lending companies can't work with because they are considered high risk candidates. Couple this with the ongoing monthly mortgage payments, and you have a housing market crisis which is what took place several years ago and effects the economy to this day.
Others have done it, you can too!
Many homeowners are looking to refinance their mortgages to make monthly payments easier. This in turn allows them the potential to keep their home and eventually pay off their loan entirely one day. But refinancing a home mortgage with bad credit was very difficult in the past so many homeowners don't even bother exploring the option. However, many lending companies now work with poor credit scores, and there are creative ways to refinance and avoid foreclosure.
- Refinancing involves paying off an existing mortgage with a new loan. The goal is to secure a loan that is lower in monthly payments but helps you make your mortgage payments.
- Refinancing a home loan with bad credit has some advantages. Reduced interest rates, monthly payments that fit your budget. Fixed and variable rates. Extended repayment terms.
- You might be able to refinance up to 135% of your home's appraisal value. and many creditors will overlook a poor credit history.
Search for the Right Help
The key is finding the right help. Some lenders and real estate agents may tell you that it's not worth their time to work with you to refinance your mortgage with a bad credit score. All that means is that you've asked the wrong people. Plenty of lending companies are tapping into the pool of people with bad credit. You may not be able to get a deal as great as you could by having a good credit score, but you can still acquire a loan which can allow you to keep your home and make your monthly payments. People do this all the time, so just keep searching till you find the right company.
The advantages of bad credit refinance
There are great advantages to be had if you find a lending company who will work with you. There often is no down payment required with no hidden fees, and usually carries a lower interest rate. You can increase the length of your loan in order to suit the reality of your financial situation. Many people consolidate their debt this way in order to spend less on other debt in their life. Others change from adjustable rate mortgage loans to fixed rate because the interest rates suddenly went up to monthly payments that became un-affordable. Make sure beforehand that you have sufficient income to handle any changes that can be made. This will be another loan to manage. If you are already in serious debt it could potentially back fire.
To see if you are eligible for refinancing visit www.real-estate-yogi.com or call them anytime at 1-800-987-1397 for a free consultation. They have agents available anywhere in the country and can help with you with all of your real estate inquiries.
