When Do Bad Credit Mortgages Make Sense?
For many borrowers, a mortgage is their biggest debt. It’s no wonder, then, that everyone wants the lowest possible interest rate on their home loan. Bad credit mortgage loans, on the other hand, have interest rates of 10-13% or even higher. While these loans can mean more money spent in interest, they are very important options for those who have credit scores of 620 or lower.
For borrowers who have had a history of excessive debt, mortgage non-payment, or other problems that may have resulted in low credit ratings, getting refinancing on an existing loan or getting a new home loan can be difficult. Lenders are often not willing to work with these borrowers, who represent a bigger risk of non-payment. That’s why bad credit loans exist. Bad credit 2nd mortgage loans, bad credit cash out refinance loans, bad credit consolidation mortgages, and bad credit mortgage loans all exist to help those homeowners or would-be home owners who want a home loan but do not have the credit history to get prime rates.
Bad credit mortgage loans help borrowers to buy a home now. This can be important if a borrower wants to stop renting and start building up assets. Bad credit mortgage loans can also help borrowers take advantage of housing costs. A borrower can use a bad credit loan to buy a home when prices and rates are lower and then work on improving their credit rating. With equity in place, this can even be easier. The new homeowner can then refinance for a better rate once their credit rating has improved.
Bad credit mortgages can also make sense when there is a real need to get a home loan. If a homeowner is having trouble paying the bills but does not have perfect credit, a bad credit home equity loan, a bad credit debt consolidation loan, or a bad credit home loan refinancing loan can help that homeowner financially.
Why not apply online today or call the bad credit refinance experts at 1-866-747-0627? The bad credit specialists at Lowest Mortgage Rates can help you decide whether a bad credit mortgage is for you and can help you get the lowest possible rates on a mortgage – no matter what your credit history. Match with Lenders now!
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