Bad Credit - Refinance

Bad Credit Refinance
Mortgage Refinance With Bad Credit

With mortgage interest rates at record lows many of us want to refinance our mortgages, but think we can’t because of a bad credit record.

Fortunately there are a number of ways that people with bad credit can get their mortgages refinanced so they can enjoy a lower interest rate. The best bad credit mortgage refinancing option available right now is part of President Obama’s “Making Home Affordable Program.”

This program makes fund available to banks and other lenders so they can help people refinance to lower interest mortgages. The Obama administration has made $75 billion available to lenders in this plan. The plan will cover all the closing and related costs of refinancing to make it easier for homeowners to refinance. The purpose of this plan is to help people with bad credit avoid foreclosure.

Many reasons to refinance the home

There are many reasons why homeowners should refinance their homes now if they can. The best reason for refinancing is the savings on interest which can be substantial.

A homeowner can theoretically reduce their mortgage interest rate to 2% with this plan. That can add up to a savings of several thousand dollars a year on mortgage payments.

It can also help homeowners move from an adjustable rate mortgage or ARM to a fixed rate mortgage. The advantage of a fixed rate mortgage is that the low rate will be locked in for the life of the mortgage. Interest rates on an adjustable rate mortgage rise when the interest rate rises. That means if interest rates rise to 10% or 15% so would be the interest on an ARM.

Another reason for refinancing is to prevent foreclosure. The high interest rates associated with many mortgage products create payments that many people can’t pay if they lose their jobs. This leads to foreclosure and the loss of a home.

Refinancing can lower interest and mortgage payments and allow a family to stay in their home. It can also help improve a credit rating because it shows that you want to take control of your finances and pay your off debts.

Shop around for the best lender

The way to find refinancing is to apply to different lenders. Many lenders have online application processes that make applying for refinancing simple and quick. All a person needs to do to apply for these refinancing deals is to type the words bad credit mortgage refinancing into a search engine. The search engine will provide you with a list of lenders that you can apply to.

Refinancing a mortgage is a great deal and easier than you think. You owe it to yourself to look into bad credit mortgage refinancing.