|Bad Credit Refinance
Bad credit mortgage refinance-
How feasible is this?
The benefits of mortgage refinance cannot be undermined. There are
many reasons of mortgage refinancing, enjoying better rates being
one of the prime ones.
But is bad credit mortgage refinance possible?
The answer is yes. It is not important to know whether you qualify
for a mortgage refinance with bad credit or not. What matters is
even if you are allowed to refinance your mortgage with bad credit,
will it be worthwhile.
It is a well known fact that lower credit scores mean higher interest
rates and vice versa. In fact as of August 14th 2009, with a credit
score of 660, you could avail 5.5% on fixed-rate mortgage for 30
years loan term. But it has been observed that if the credit score
nosedives below 660, you will have a tough time getting a good deal.
So, getting bad credit mortgage refinance isn't difficult but you
may have to weigh the benefits and find out if it serves your purpose.
There are many reasons why borrowers opt for mortgage refinancing.
It may be to get access to some extra cash. This is referred to as cash-out
refinancing, where you can free up any equity that is left in your property.
The proceeds of the same can be used for meeting different financial
obligations. If you are currently making payments according to very high
interest rate and the mortgage rates in the market have dropped, you can
opt for mortgage refinancing if you find that it will reduce the current
interest rate by few points. However, in your quest for bad credit mortgage
refinance, it is important that you look around for a good lender that will
agree to refinance your mortgage if not on very good terms but it should
be of some benefit to you at least. It is not unknown that the lending
norms have become very stringent.
So, you will have to really do a bit of homework before you can finally
settle for a deal that will not make you regret later. Contact me today
if you have any questions on this or other Kirkland or Bothell Homes.