If you have bad credit and need to refinance for your home loan for any reason including lower your interest rate to achieve a lower monthly mortgage payment or for remodeling of your home, you may believe this feat is impossible. The truth is, in today’s economy, a few lending companies are catering to individuals with credit that is not perfect, so they can refinance their home and reap the benefits.
If you have bad credit but are still paying your mortgage payments on time, you will find it is much easier to get a bad credit refinance for your house as long as you can qualify for a new loan. In most cases, in order to obtain a refinance loan, you’ll need to do the entire process again. However, there are a few companies with options that will allow you obtain your mortgage loan without going through the entire process such as skipping an appraisal.
The interest rate for a mortgage loan for those with terrible credit including refinancing loans are usually a bit higher than those that have an excellent FICO score. However, as long as you can obtain a loan that will in fact lower your monthly payment; you could be saving money in the long run. You may even decide that you want to keep your monthly the same as it is now, but you would like the length of the loan to be shorter from 30 years to 20 years. This can also be accomplished with this type of loan.
You can find a refinance loan no matter what type of FICO score you might have, but you will have to search and compare different mortgage companies along with the options and plans they have available. But, you can definitely expect to pay more in potential fees as well as finance charges throughout the terms of the new loan.