Posted on: 19th Aug, 2007 07:00pm
If you have poor credit score, it does not mean that you don’t have any mortgage refinance option left. Though with bad credit, it is difficult to get approved for mortgage refinancing, but it does not mean that it is impossible altogether. You may still be approved for mortgage refinancing but with higher rate of interest. Here we discuss about the some things that you need to follow so as to get the mortgage approval with poor credit.
Importantly, you need to shop around so as to get the approval for mortgage refinancing even with poor credit. Before making the final choice you need to make a comparison between different offers.
- Examine your credit report carefully. Though it is possible to get approved for mortgage refinancing with bad credit but lenders will not agree to refinance your mortgage if your score is indeed very bad. In that case it is advised that you should postpone refinancing and should focus on improving your credit score.
- By practicing wise financial habits, you can improve your score. You need to put in efforts to lower down your debts and should pay bills on time so as to give a boost to your credit score.
- Find a co-signer with good credit score. Presence of a co-signer can augment your chances to get the approval for refinancing your mortgage.
Importantly, you need to shop around so as to get the approval for mortgage refinancing even with poor credit. Before making the final choice you need to make a comparison between different offers.
in december of 05, my boyfriend bought a home with a fixed rate of 7.9% for 2 years and adjustable aftewards. (there is a penalty for early payoff) now it is almost time to refinance to a fixed rate but his credit score is lower than before.(late payments on mortgage, some unpaid credit cards and a garnishment. is it still possible for him to refinance or do he have to wait?
Hello-
I am purchasing a duplex on contract that I use as a rental unit. I paid a down payment and have made all of my monthly payments. I only owe $23,000 on it. I have a credit score of approx 650. My wife and I have a 190,000 home which we owe about $170,000. We both work and make over $110k combined. Her score is slightly higher than mine. What is the best course of action to try to get a loan for the rental?
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I am purchasing a duplex on contract that I use as a rental unit. I paid a down payment and have made all of my monthly payments. I only owe $23,000 on it. I have a credit score of approx 650. My wife and I have a 190,000 home which we owe about $170,000. We both work and make over $110k combined. Her score is slightly higher than mine. What is the best course of action to try to get a loan for the rental?
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Hi KENNETH!
Welcome to forums!
You can speak to the lenders and check out if they can offer you a loan for that amount. If lenders do not agree to give loan for such a small amount, then you should check out if you can get a personal loan or not. However, you should remember that personal loans come at a higher rate of interest.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
You can speak to the lenders and check out if they can offer you a loan for that amount. If lenders do not agree to give loan for such a small amount, then you should check out if you can get a personal loan or not. However, you should remember that personal loans come at a higher rate of interest.
Feel free to ask if you have further queries.
Sussane
not sure what you are trying to accomplish. are you looking to refinance the $23k? did you want to cash money out?
if your goal is simply to reduce the interest rate on your $23k loan, then you will need to see a very large reduction in your rate to make up for all of the closing costs.
if your goal is simply to reduce the interest rate on your $23k loan, then you will need to see a very large reduction in your rate to make up for all of the closing costs.
eric is correct, and it would behoove you to borrow not less than $50000 overall - take some cash back and do whatever it is you wish to do with the funds. otherwise, the cost is going to be prohibitively high for you.
Kenneth your closign cost to finace $23k will be higher than what you will end up saving.
What is the reason you are trying to finance the 23K.
Have you look at the option of refinancing the home you are currently in?
What is the reason you are trying to finance the 23K.
Have you look at the option of refinancing the home you are currently in?
I have a pre-1976 Mobile Home with an acre of property that is investor finance at 11% rate and would like to refi but I have filed Chapt 13 in 2003 and have low scores, I am 4 mths behind and what like to know what I need to do. I want to stay in my home so I would like suggestions, can I refi or What?
[E-mail address deleted as per forum rules. Thanks.]
[E-mail address deleted as per forum rules. Thanks.]
Hi WWeiss!
Welcome to forums!
It will be difficult for you to refinance the property because you had filed for Chapter 13 and have low scores. Moreover, you've mentioned that it is a pre-1976 mobile home. Mobile homes build prior to 1976 hardly qualify for loans. It would be better if you could sell off the property and rent a property for some time. Meanwhile, you can take steps to improve your credit score. Then you can try purchasing a new property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It will be difficult for you to refinance the property because you had filed for Chapter 13 and have low scores. Moreover, you've mentioned that it is a pre-1976 mobile home. Mobile homes build prior to 1976 hardly qualify for loans. It would be better if you could sell off the property and rent a property for some time. Meanwhile, you can take steps to improve your credit score. Then you can try purchasing a new property.
Feel free to ask if you've further queries.
Sussane
a friend financed a modular home for me in 2005 i pay the mortgage of 800 per month never missed a payment now my friend want to house re finance in my name how do i do this with a low credit score. help
With a low credit score, it won't be possible for you to get a refinance. You can either improve your credit score and refinance the loan or you may take the help of a cosigner in order to refinance the loan.
my husband and I have an interest rrate of 8.2. we now have the money to pay the motgage of 132,000 off in full. should we do this or try and re-finance?? and would it help to pay 50,000 towards the mortgage in order to refinance?? our credit scores are really low.
Hi meggie,
You can definitely pre-pay your mortgage and this will be a good option compared to that of a refinance. As your credit scores are low, it will be difficult for you to get a refinance. However, you should check out your mortgage docs to find out whether or not there is a pre-payment penalty clause mentioned.
You can definitely pre-pay your mortgage and this will be a good option compared to that of a refinance. As your credit scores are low, it will be difficult for you to get a refinance. However, you should check out your mortgage docs to find out whether or not there is a pre-payment penalty clause mentioned.
Hi JP,
As you're in a bankruptcy filing, most of the lenders won't be ready to give you a mortgage refinance immediately. I would suggest you to wait for 6 months and then apply for a refinance to check out if your current lender is ready to refinance the loan.
Thanks
As you're in a bankruptcy filing, most of the lenders won't be ready to give you a mortgage refinance immediately. I would suggest you to wait for 6 months and then apply for a refinance to check out if your current lender is ready to refinance the loan.
Thanks
I own 2 homes valued at twice what they are mortgaged. I would like to refinance but am retired and recently widowed. One loan is a 3 yr balloon due soon. I would like to find a company to refinance so I don't have to deplete my limited financial resources. Can you suggest options?