With poor credit you can still lower your monthly mortgage payments by
refinancing with a fixed rate home loan. Not only will your payments be
smaller, but you will have peace of mind of a predictable mortgage. You
can also pull out part of your equity to help pay off bills and improve
your credit standing.
Lower Monthly Payments – Even With Bad Credit
You can still lower your monthly mortgage payments even if you have
late or missed payments in your credit history. Working with a subprime
lender, you can reduce your monthly mortgage bill in two ways.
The first is to find a low rate home loan. Searching online will help
you find some of these better mortgage deals. With more efficient
processes, online lenders are able to offer better rates than traditional
financing offices. Comparison shopping will also help you find the lowest
rates.
The other choice is to reduce your monthly payments by extending your
loan terms. Fortunately, with a fixed rate mortgage you can determine
precisely when you want your home loan paid off. There’s no worry over
unexpected rate hikes, pushing out your loan period. Instead, you choose
how much you can afford to pay.
Reducing Your Other Monthly Bills
Pulling out your equity to pay off other bills can also help with your
cash flow issues. By eliminating your high interest debt, you reduce
your interest costs and improve your credit score. Consolidating your
bills also gives you just one monthly bill to deal with.
With the savings from refinancing, you can either make larger principal
payments to reduce your debt or build up your savings. In either case,
you will be improving your credit score.
Planning For The Future
Try using one of ABC Loan Guide's Recommended Poor Credit Mortgage Refinance Companies.
To get on the right track, give yourself at least a few hours to
investigate lenders. Request loan estimates and go over the details. The more
informed you are about the financing offers, the better choice you can
make. Also, make sure that you don’t have any fees for early repayment.
That way, when your credit improves, you can refinance for conventional
rates without getting stung by fees.
View our recommended lenders to Refinance After Bankruptcy. Also, view our recommended sources to Check Your Credit Report For Free.
