You Can Refinance A Home With Bad Credit
The purpose of this page is to provide Home Refinance options for people who have less than perfect credit. Most people know that, at some point, they really need to start the process of repairing their credit. You can get 100% Free Information that will help you stop collection calls. Avoid credit repair scams. Choose the right service to fix your credit report. And raise your credit score. Plus receive a Free Credit Evaluation. Sign Up Now at CreditAssist1.com.
But this page you are on now provides information on home refinance with bad credit. It provides an overview of how home equity loans, or a refinance with bad credit, works. It also explains the difference between these types of loans.
Maybe you bought your home when rates were higher. Or you have an adjustable rate mortgage and would like to change it to a permanent fixed rate. But since then you had some credit issues and now looking to find out if you are able to refinance.
Or, maybe you are not interested in a total refinance at all. Maybe you would just like a loan that only uses the equity that you have in your home. These are called Home Equity Loans, or Second Mortgages. In any of these cases there are lenders who specialize in helping people who have bad credit to refinance, or obtain an equity loan.
We know that a lot of times the terms Home Refinance, Home Equity Loan, and Second Mortgage all gets used interchangeably and can be confusing.
A Home Refinance is very much how it sounds. Your existing loan on the home is completely replaced and you get a brand new home mortgage loan. For Example: 5 years ago you bought a home valued at $100,000 and you got a 30 year mortgage for $100,000. Now interest rates are much lower than what you have, therefore you want a new loan at this lower rate. The balance of the mortgage is now $95000. The old loan is paid off and you now have a new loan for $95,000. You have to start all over again with a new 30 year loan but your monthly payments are much lower. And that is the benefit of obtaining a refinance.
A Home Equity Loan is a loan that is only for the excess difference between the balance of your current loan and the value of the home. For Example: The same $100,000 mortgage loan you got 5 years ago in the example above now has the $95,000 balance. But the home itself is now worth $105,000. This is a $10,000 difference between what is owed and what the home is worth. You can leave the existing mortgage exactly as it is and get a new completely separate loan for any amount up to $10,000.
A Second Mortgage happens if the finance company that gave you that Home Equity loan files papers to officially record the home as collateral for the loan. Second Mortgage and Home Equity are the main two that gets referred to interchangeably and creates the confusion. If someone has A1 perfect credit they often can get a home equity loan and the finance company never records it. Therefore a second mortgage doesn’t exist and the loan is really more like a personal signature loan. However if someone has some credit issues you can expect that it is highly likely that the home will be officially recorded as collateral which creates the second mortgage situation. Further below on this page is a link to submit a free, no obligation inquiry for a home refinance, home equity, or second mortgage, loan.
It is important to keep in mind that with any kind of loan involving your home the basic process is kind of similar to what you went through when you originally obtain the mortgage loan to purchase your home. Here is a brief reminder of a few questions to ask, and things to keep in mind:
* Is there an origination fee involved?
* Are there points involved, if so then how many points? (A point is 1% of the loan amount. So if the mortgage amount is $100,000, and they start talking 2 or 3 points… that is additional closing fees that can add up quickly)
* Is there a pre-payment penalty fee, if you pay the entire loan off early? (It’s also a good ideal to check with your current mortgage company before your refinance to see if they have a pre-payment penalty)
* All mortgage companies are required to give you a written itemized estimate of your total closing cost. It’s call a Good Faith Estimate, and it is very important that you have it faxed, mailed, or emailed to you before you commit to anything.
There are companies who specifically work with people who have less than perfect credit. They make loans to people who would be denied by the banks.
Yes, of course, you should expect a higher interest rate. But you will always have the option to re-finance, to a lower rate, once your credit improves. This is another reason why you should start working on repairing your credit.
Most people never know that these companies exist. They do not advertise on TV, or Radio, or the Internet, etc. So how do you find them?
There are membership services that these lenders belong to. By becoming a member you gain instant access to all of these different money sources. Think membership to a club. Membership to a gym. Membership to Costco, etc. It is the same thing. Members have access to benefits that the general public does not.
CreditAxis Is A Great Source
For Bad Credit Home Refinance
They have thousands of people who become members, and then get approved for loans.
With CreditAxis, there is only a one time $35.95 cost to become a member! This will give you instant access to a current database of lenders who make loans to people who have negative credit reports.
Once you become a member you will have unlimited lifetime access to the database of lenders. The database is updated often. You deal directly with the loan company. Follow the advice we have provided for Home Refinance, Equity Loans, or Second Mortgages. You can apply to more than one company to compare your options.
BENEFITS TO YOU:
* They do not automatically deny you because of your credit report
* Slow payments, judgments, or liens, will not automatically disqualify you
* Bankruptcy, Foreclosure, or Repossession, will not automatically disqualify you
* They understand Lost of job, Divorce, Medical, etc.
* You always have an opportunity to fully explain your situation
* Instant Access, Apply Online, Fast Approval Process
Everything is organized. Home Loans, Refinance, Personal Loans, Auto Loans, Debt Consolidation, or Loans for any reason. And yes, even a Payday Loan, if that is all you are looking for. This is what your membership gets you. Everything is conveniently organized all in one place. You can submit an online application to whoever, for whatever, you choose to.
But, here is the main reason why we recommend CreditAxis. Your $35.95 membership fee is processed by ClickBank. They are a secure, trusted, internet payment processor. They are second only to PayPal. You can choose PayPal as your form of payment if you like. But it is processed through ClickBank. And ClickBank has a 60 day, no questions asked, money back guarantee!
That’s right, this completely eliminates any risks to you! Become a member. And then you will have 2 months to find a loan. Clearly, it will not take that long to get approved for a loan.
Visit Their Website Now