Oct 29, 2018 | Jason Ward |
How to Refinance a Mortgage with Low or Bad Credit? Are you thinking of refinancing your mortgage? Do you think that you cannot refinance your mortgage due to your bad credit? Do not be upset, the short answer is 'yes', you can refinance a mortgage with bad credit. Though the majority of people in the United States believe that less-than a perfect credit history, they would not have access to the lowest refinance mortgage rates of interest or the best loan terms. But very few of them know that qualifying for a refinance mortgage maybe possible even whether they have had to file for bankruptcy. Here are the three ways if you have blemished the credit and wish to refinance your mortgage. 1. Try to make your refinance application more appealing to lenders The great number of lenders sees applications with low or bad credit scores as risky borrowers. If you want to qualify for a refinance with low or bad credit score, you should highlight any good quality that can prove you are eligible. For instance, whether you have kept the same job for five years, which is something you may wish to highlight. Lenders always want applicants to have a steady source of income. You might have an issue whether you do not have a steady income source to offset the low or bad credit. 2. Show that you have some savings Whether you are expected to grow in the near future or you have some savings in your bank account; you can easily draw the lenders' attention for a refinance. As a matter of fact, lenders want borrowers to have some cash reserves. 3. You can ask somebody to co-sign Are not you sure whether you can refinance with low or bad credit? You can consider finding a close friend, colleague, family member or partner who can co- sign your mortgage loan. But the person who co-signs you needs to have a better credit history. He or she needs to have a stable financial situation as well. Final Word If you are trying to refinance a mortgage with bad credit, it can be a daunting task, but it is not impossible. Using the above three strategies we have discussed in this post will give you a chance to lower refinance mortgage rates and reduce your loan term so that you can easily pay off your mortgage debt in less period of time.
If you want to qualify for a refinance with low or bad credit score, you should highlight any good quality that can prove you are eligible.
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