Lower Interest Rates

A bad credit mortgage refinance is possible even if you have a not-so-great FICO score. A bad credit mortgage refinance will help homeowners by allowing them to receive lower interest rate leading to a lower monthly mortgage payment. Take a good look at your current bills, especially your credit card bills. Sometimes your credit card bills can charge you exorbitant interest rates and additional high fees for late payments, over-the-limit payments and more. See what you are paying credit card companies and then adetermine if obtaining a mortgage refinance is possible. If it turns out that you will be saving hundreds of dollars on your mortgage payment by refinancing, then it will make sense to apply for the refinance.

You can consolidate your debt into one payment by obtaining a bad credit mortgage refinance plan. This will eliminate a lot of those high fees. Again, keep in mind that your home is on the line. If you have a history of defaulting on debt or otherwise having a history of non-payments, think again before you apply for a mortgage refinance. You could lose your home if you don’t make the payments as promised.

The benefits of a bad credit mortgage refinance are that you can start to rebuild your credit history by wiping out existing debt, paying off credit cards, and making one payment to a mortgage company. Your credit score is based on whether or not you make payments on time and how many open lines of credit you have. If you have a lot of new credit card accounts, this will adversely affect your credit.

But if you make timely payments without missing any, you will see your credit score go up. Once you have a great credit score, you will be able to easily obtain loans for cars, credit cards, etc., at much lower rates. Also, by only having one payment to remember to pay, you may be less likely to miss a payment when you’re trying to juggle a lot of bills at once.

A great way to make sure your mortgage payment is paid on time every month is to set up an automatic draft from your bank account. You will never have to worry about missed payments or late fees again. Just make sure you have the money in the account when the payment is withdrawn.

If you are in the market for a bad credit mortgage refinance do some checking online or with a reputable financial institution before you apply. There are fees or interest ‘points’ that sometimes are added onto the loan so make sure you talk with a knowledgeable professional before pursuing a loan. Compare rates and fees as well – a half of an interest point makes a big difference in your payment. Make sure it is a financial decision that makes sense for you before you sign on the dotted line.