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Credit Scoring: What it is, and How It Affects You
If you have applied for a mortgage in the past five years, you’ve probably heard of credit scoring by now. Perhaps you were told that your credit scoring was wonderful, or needed work. Or maybe your mortgage would have been lowered by several...
How Loans Can Improve Credit
Individuals who have had credit problems in the past know how much of a hassle it can be to try and get a loan with bad credit. It can be worth all of the trouble, though... after all, not only are you getting the loan that you need but you're also...
How to find a mortgage with bad credit
Shopping online for mortgages ought to be trouble free, even should you have poor credit or no credit score. You can nonetheless find a bad credit lender that can facilitate you. The internet has expanded the international marketplace in a way never...
Looking for a Bad Credit Home Improvement Loan
To make needed repairs to your home without the advantage of a good credit history often requires a bad credit home improvement loan. This loan, designed for people with less-than-perfect credit, uses the equity in your home or real estate and...
Starting Out With Credit Cards
When you are first starting out with a credit card, it is
important to pay attention to credit card interest rates. If
possible, you might consider applying for a 0 apr credit card.
This means that for a period of time, you would pay 0%...
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Bad Credit Mortgage Refinancing
Bad credit mortgage refinancing loans are used to solve two
different problems.
Problem Number One: The homeowner has bad credit, significant
high interest credit card debt and a home with substantial
equity. In order to pay off the high interest bills, the person
refinances his/her home and cashes out all or part of the
equity. The cash from the equity is used to pay off the high
interest obligations. Although the interest rate on the bad
credit mortgage refinancing loan may be higher than that of a
conventional loan, the house payment should still be less than
the total of the high interest consumer debt.
A bad credit mortgage refinancing where the owner intents to use
the cash from the home's equity to pay off bills is called a
debt consolidation loan. The value of the home being refinanced
must have grown so that the home's appraised worth will justify
a larger loan. The new loan amount must be high enough that the
owner can cover the loan's closing costs and still have enough
left over to pay off the credit card debt.
A bad credit mortgage refinancing such as this can have several
advantages. The term of the loan will be longer. Since even a
high interest subprime loan carries a lower interest rate than
do high interest credit cards the new house payment will be
smaller than the total of the old house payment and the consumer
debt payments. However, choosing to refinance in this manner
carries risks. If the homeowner does not change the behavior
that led to the high debt, even more high interest credit card
bills may be accumulated. Since the homeowner's equity has
already been "cashed out" of his/her house the only alternative
in a
money crunch may be bankruptcy or foreclosure.
If a homeowner chooses a debt consolidation loan as the method
of bad credit mortgage financing, it is imperative to use the
cash received to pay off the accumulated debts. Credit
counseling to keep from returning to poor credit practices
should also be considered.
Problem Number Two: The homeowner had bad credit when the home
was originally purchased and had to take out a high interest
subprime mortgage loan at that time. Two or more years have
passed since the loan was made during which time the homeowner
has made all of the loan payments on time and has incurred no
other bad credit. Now the time has arrived to refinance the loan
and receive a better interest rate.
Even with two years of excellent credit history, a homeowner
trying to refinance a bad credit mortgage may not be able to
obtain a conventional low interest loan. The type of loan that
can be attained will depend on a variety of factors such as
current income and how much debt the homeowner has.
Refinancing a bad credit mortgage under these circumstances may
be a good idea if the following two statements are true.
1. The new loan will carry an interest rate two or more
percentage points lower than the current loan.
2. The homeowner plans to stay in the house for three or more
years.
About the author:
Carrie Reeder is the owner of www.abcloanguide.com, an
informational website about various types of loans. View her
recommended Bad Credit Mortgage Refinance lenders.
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| Credit Reports - Credit Cards - Car Loans - Home Loans - Credit.com |
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| The FTC's web site on Credit |
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| Federal Trade Commission - Consumer Credit Center |
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| AnnualCreditReport |
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| Springboard - Non-Profit Consumer Credit Management |
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| Experian: Free Credit Report and Credit Score, Credit Check ... |
| Credit referencing and consumer targeting for the USA and other countries. |
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| National Credit Union Administration - Home Page |
| An independent federal agency that supervises and insures 7152 federal credit unions and insures 4240 state-chartered credit unions. |
| www.ncua.gov |
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| Credit - Wikipedia, the free encyclopedia |
| Debits and Credits, a type of bookkeeping entry; Credit (creative arts), acknowledging the ideas or ... Retrieved from "http://en.wikipedia.org/wiki/Credit" ... |
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| Credit (finance) - Wikipedia, the free encyclopedia |
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| en.wikipedia.org |
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| The National Foundation for Credit Counseling |
| DebtAdvice.org is a service provided by the Members of the National Foundation for Credit Counseling (NFCC), most of them known as Consumer Credit ... |
| www.nfcc.org |
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| FreeCreditReport.com | Free Credit Report and Credit Score Online ... |
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| The Credit Card Prank |
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| Credit magazine, corporate bonds, derivatives, structured credit ... |
| Credit magazine provides information on the international credit markets for credit investors, issuers and market professionals. |
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| CUNA: The Credit Union National Association |
| News and resource directory about credit unions. |
| www.cuna.org |
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| Credit/Debt Management - Tools and Advice for Managing Credit and Debt |
| Drowning in debt? Trying to improve your credit score? This is the place for you. Get real world information and tips, as well as the legal low down, ... |
| credit.about.com |
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