Bad credit mortgage refinance is certainly a sign of the times now. The economy has fallen off a cliff. People who once had steady jobs with good paychecks are suddenly unemployed. Money is tight and hard to come by.
Many people over the last few years jumped into the real estate market. Whether they were in the market to try and “flip” a property or were establishing roots in a community by purchasing a house, the real estate market was hot and this caused interest rates to rise.
Now that the real estate market has crashed and interest rates have come down, this is the best time to refinance your mortgage. Rates have dropped over a point on 30-year mortgages in the past year. A rate drop like that can mean significant savings for a homeowner.
But you might be holding off due to your credit rating. Perhaps you have had some credit problems before. You might have been late with credit card payments of a car payment or even student loans. Because of these blemishes on your credit record, you may feel you won’t be able to refinance your mortgage.
DO NOT LET THAT STOP YOU!!
Now more than ever is the best time to refinance your mortgage, even if you have bad credit. Why? With the government stimulus plan, banks and lenders have been encouraged to give BAD CREDIT MORTGAGE REFINANCE LOANS.
Refinancing mortgages is good for everyone. It’s good for the banks because with a lower interest rate, the borrower is less likely to fall behind on payments and forcing the lender to take the home back. Lenders do not want to take back homes and be forced to sell them. It is expensive and time consuming for them.
As for you the borrower, now is the time to refinance before interest rates start to head back up. Rates have been dropping and banks now have government incentives to loan you money. With rates dropping a point this year, this can lead to big savings on your mortgage.
Here’s an example of the savings by refinancing your mortgage. IF you have a 30-year fixed rate mortgage at 6.25% on a $250,000 mortgage, your monthly payment is $1,539 per month in just principal and interest. By refinancing with a 5.25% mortgage, the payment drops to $1,380 per month. This is a savings of over $150 per month!
This is a no-brainer. The savings are huge. So even if you have bad credit, it will pay for you to go out now and get a bad credit mortgage refinance loan.