Bad Credit - Refinance

Bad Credit Refinance
Refinancing With Bad Credit

Refinancing a mortgage can be very difficult in the best of times and nearly impossible for a person with bad credit.

Mortgage companies may be willing to refinance mortgages for people with bad credit in certain situations. Unfortunately people with bad credit will have work harder and look longer to get their mortgages refinanced.

Call Your Mortgage Company

The first place a person who is thinking of refinancing a mortgage should look for refinancing is their existing mortgage company. Call the mortgage company and ask what refinancing options are available for you.

A person with bad credit but a history of making their mortgage payments on time might be able to work out some sort of deal with their mortgage company. One advantage to working with an existing mortgage company is that they may not run a new credit report for the refinancing which can hurt your credit.

One way to increase your chances of getting refinanced is to pay some mortgage payments early. This can show the mortgage holder that you have the income for refinancing.

Shop Around

You should shop around when you’re looking for refinancing. A good place to do this is to go online and visit a number of mortgage websites to see what they are offering.

When you do shop around try not to fill out too many mortgage applications. When a mortgage application is filled out the lender often runs a credit check. Running checks can cause your credit score to fall and hurt your chances of getting a mortgage.

Instead talk to the mortgage companies directly, describe your situation and ask what they can do for you. They should be willing to give you a quote or rough estimate without running a credit check.

Know Your Home Value

Always learn your home value or at least the price that homes comparable to yours in your area are selling for before you seek refinancing. You’ll want to know this because if the price you can sell your house for is less than the cost of your mortgage you might not be able to get refinancing.

A good way to determine the price your home would sell for is to check the real estate listings online. Look for homes like yours in your neighborhood or zip code and check the list price. If your home value is well below the total cost of your mortgage don’t even think about refinancing.