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If you are one of the many who are struggling with your monthly repayments for your home loans and consider looking for a bad credit refinance to solve your financial crisis, then don’t panic. Although banks have tightened up their lending standards, still it is possible to get a bad credit loan refinance or a mortgage for a new home purchase even with a bad credit history. This is the good news, but on the contrary the bad news is getting a bad credit refinance or other mortgage gets progressively more expensive the lower your credit score is. The questions are not whether you can refinance your mortgage, but is the term on refinancing makes the process worthwhile. Why do you want to refinance? Are you looking to take advantage of the current low rates in order to save a certain percentage off your current mortgage? Do you have interest- only or option ARM that’s about to reset to a much higher monthly payment? Or perhaps you’ve suffered a financial setback and would like to refinance your remaining balance back out to 30 years to bring down your monthly payments.


                Bad credit loan Refinance will depend on how poor your credit is. You will have problem refinancing to a lower fixed rate than what you have now. Interest rates are related to credit scores, the lower your score, the higher the rate you are going to pay. If the reason for your poor credit is due to missed mortgage payment by 30 days or more, you likely won’t be able to refinance – a loan modification is probably more realistic option. However, if getting a poor credit is due to other factors like high levels of credit card debts, and currently paying a high rate on your mortgage, it is worth to refinance even if you don’t qualify for the lowest rates available. It makes sense to have bad credit refinance, even if you don’t qualify for the lowest rates, if you have an ARM that is about to change to a higher rate or monthly payment. Because interest rates are low at this point of time, it isn’t likely that a regular ARM will change to a much a higher rate. But if you have an interest-only or option-ARM that’s about to change, you will be facing extremely higher payments if you won’t opt for bad credit refinance.


                The key to bad credit loan refinance or when you are looking for a mortgage, in fact is to stop around. Different lenders and brokers will serve to the different needs of the consumers, and some of them specialize in loans to people with bad or weak credit. It is important to search and shop around. Know your credit scores and contact at least 6 to 10 lenders and see what sort of term they can offer. You can obtain your credit score from the three major reporting agencies like Experian, Equifax and Transunion with minimal fee for obtaining your actual credit score. You can also contact different mortgage brokers, who can track down the lowest rate and terms for you.