Bad Credit Mortgage Refinancing: What You Need to Know About Sub Prime Mortgage Lenders

If you have been avoiding mortgage refinancing because of your credit, there are a number of reasons you should refinance despite your credit rating. Your mortgage is an excellent tool for rebuilding your credit, it can even save you money and free up cash in your budget. Here are several tips to help you decide if bad credit mortgage refinancing is right for you.

Mortgage refinancing has the potential to save you a lot of money if done correctly. Bad credit will not prevent you from refinancing your mortgage; however, how much you pay for the new loan depends on how much time you can afford to invest researching mortgage lenders and their loan programs.

Bad Credit Mortgage Refinancing: Consider Using a Mortgage Broker

If you don’t have the time to properly research bad credit mortgage loans, mortgage brokers can be excellent resources for finding specialty lenders. You have to watch the broker like a hawk to avoid overpaying and understand how the broker makes their money. With that said, mortgage brokers have connections with bad credit lenders and could easily place you with a competitive loan offer.

Bad Credit Mortgage Refinancing: Be Prepared to Pay More

When refinancing your mortgage with poor credit you can expect to pay a higher interest rate and possibly a point or two for mortgage refinancing. You can minimize this expense by comparison shopping for the best bad credit mortgage offer. When you compare loan offers it is important to compare all aspects of the loans and not get hung up solely on interest rates. Depending on how severe your credit problems are, you may need to seek bad credit mortgage refinancing from a Sub Prime mortgage lender. Sub Prime lenders specialize in mortgages for homeowners with credit problems. If you invest the time doing your homework and researching Sub Prime lenders, it is possible to qualify for rates and fees comparable to those paid by homeowners with good credit.

Bad Credit Mortgage Refinancing: What You Need to Do First

The first thing you should do before considering bad credit mortgage refinancing it to review your credit history for errors. Credit records are maintained by three separate reporting agencies and with dozens of creditors accessing your file throughout the year; these records are extremely error prone. Having errors in your credit reports will significantly reduce your credit score. Your credit score is one of the main factors lenders use when determining what interest rate you qualify for. If you find errors in your credit history you will need to dispute the error prior to refinancing.

You can learn more about bad credit mortgage refinancing without overpaying and making costly mistakes by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com

Bad Credit Mortgage Refinancing

How Do I Get Out Of Credit Card Debt?

Reduce Your Spending

It's always best if you start by reducing your spending. Cut any unnecessary expenses for the time being while you build up your savings account so you can pay for emergencies or fund any opportunities that might come up. Pay off any new credit-card expenses every month in full. Reducing your spending now will pay off in the future. Making little sacrifices you can save hundreds of dollars and use them to put money aside for emergencies and for repaying your debt.

Avoid Minimum Payments

Always pay more than the minimum payments on your cards. Most minimum payments barely cover the interest on your balance. If you can only afford the minimum payments, start with the card that has the highest interest rate and pay just a few dollars more every month. Over time, gradually increase the amount until you pay it off completely.

Highest Rate or Lowest Balance

If you can't afford to pay more money on your highest interest rate credit card, choose the one with the smallest balance and use any extra cash that comes your way to pay it. When you pay that card off, take the amount you've been paying on it and add it to the account with the highest balance. Continue this until you dig yourself out of debt.

Request a Home Equity Loan

Take out a home equity loan to pay off credit card debt. The interest rate on home equity loans is usually much lower than credit card rates and it is also tax deductible. This can be an extremely effective repayment method if you are disciplined. Be careful not to abuse the use of this loan because defaulting on your home equity loan could trigger the lenders ability to repossess the property. These loans can be as easy to abuse as credit cards, so you might as well try to exercise some control on your spending.

Balance Transfer Technique

A less aggressive way to pay off your debt is to transfer your higher rate credit card balances to your lower-rate credit cards. This works until you run out of lower-interest opportunities and close your old accounts so you aren't tempted to use them again. A lower interest rate will always let you use a bigger proportion of your income for repaying your debt.

Transferring credit card balances should be done with caution. You can take advantage of 0% APR and 0% Balance transfer promotions but you need to make sure to meet the necessary requirements and don’t exceed the promotional period. Otherwise, you can incur in more debt and fail to achieve your goal of reducing your credit card debt.