This article is about Refinance mortgage with bad credit. Looking to refinance your mortgage but have bad credit? This is the time to be out there looking to refinance your loan. Rates have dropped and lenders are working with borrowers to put them in to better loans. Read on and discover why.
You may currently have a bad credit score. This might be from past problems with credit cards, personal loans or maybe a repossessd car. These events certainly don’t help you in getting a loan, BUT IT DOESN’T DISQUAIFY YOU EITHER.
If you are currently having problems with paying your mortgage or with your other debt, refinancing may be a way to help you out of this situation. If the current interest rates are lower now than when you first got your mortgage, you are a candidate to re-do your mortgage and get a cheaper rate and save money.
Depending on the equity in your home, it may be possible to move your debts like your credit card into a new mortgage. This can help you lower your over all monthly payments and give you a chance to get back on your feet and start to improve your credit score.
You will need to determine several things to see if this works in your favor. You should know the current balance of your mortgage and the value of your home. If you have equity in your home, then you may be able to refinance your existing mortgage and use the extra money from the refinance to pay down a credit card loan or car loan. With mortgage rates around 5% now, that is a heck of a lot better than paying over 20% on a credit card.
Is refinancing a mortgage with bad credit the right thing to do now? It all depends on how the numbers add up. I know it’s not a pleasant thing to sit down and figure out all the numbers to see if it works. But for most people this will be the easier way they can save money on their monthly budget. The difference between a 5.25% and a 6.25 $250,000 mortgage is over $150 per month! That is $150 that could be going to your savings or paying down other bills or even taking that vacation you need.
Take the next step now. Start looking at your mortgage and your bills and see if refinancing your mortgage with bad credit makes sense.