How To Repair Bad Credit By Refinancing Your Home Mortgage

 


Visitors: 211
 1 vote

One of the best ways to repair your bad credit is by refinancing your home mortgage. The difficult part is finding a lender for your home mortgage since your credit history is not good. Forget about the banks and other financial institutions, they will not probably accept your home mortgage. So how do we find a lender that does?

Well, the answer to that lies in subprime lenders. Most subprime lenders are willing to offer loans to people with bad credit history. However do note, it does vary from one lender to another and you may have to visit a few before finding one that does.

You can find subprime lenders on the internet, through your friends or the local business directory. Some lenders have acquaintances with other lenders and they can do a referral on your behalf.

Since subprime lenders are taking a high risk by refinancing your home mortgage, you may need to find a few before you find one that offers you the loan. Subprime lenders also have their own approval process not much different from banks and financial institutions. Your credit history, assets, gross income level, current debts etc are all taken into consideration when determining whether you qualified for the loan except that they have a higher threshold compared to banks and financial institutions.

They usually charge higher interest rates due to the higher risk they are taking, so even though you may pay more, in my opinion, the benefits of recovering from your bad credit outweighs the disadvantage of higher interest rates.

Do take note, this is a temporary solution as you still need your pay your monthly refinance on time. If not, you will be in a worse position. I recommend getting a refinance home mortgage loan more than what you currently owe so that you have some money to clear off your credit card debts, bills etc. That also helps in your credit repair efforts.

Ultimately, this method of credit repair still require you to manage your finances better. I would recommend to setup the refinance payments to automatically deduct from your salary every month. In this way, part of your salary goes towards repaying the refinance loan before you even have a chance to take out the money. Most banks can set it up for you free or you can use the internet banking system to do it.

Remember, the only way to repair your bad credit is to have good discipline with your finances.

Ricky Lim works in a finance company specialising in Home Refinancing Loans . Visit his site for countrywide home loans rates and home loan calculator

(455)

Article Source:


 
Rate this Article: 
 
Bad Credit Mortgage Refinancing
Rated 1.0 / 5
based on 1 vote
ArticleSlash

Related Articles:

Bad Credit Repair is Possible by Refinancing Your Home Loan

by: Guy Ray (July 15, 2006) 
(Finance/Credit)

Bad Credit Mortgage Refinancing - Can You Refinance a Home with Poor Credit?

by: Carrie Reeder (November 30, 2005) 
(Finance/Mortgage Refinance)

Refinancing Your Home Mortgage Loan With Bad Credit

by: Carrie Reeder (June 16, 2005) 
(Finance/Mortgage Refinance)

Refinancing Your Second Mortgage or Home Equity Loan With Bad Credit

by: C.L. Haehl (March 13, 2007) 
(Real Estate)

Home Mortgage Refinancing Loans For People With Bad Credit

by: Yvonne Suzannah (July 17, 2008) 
(Finance/Mortgage Refinance)

Mortgage Refinancing: Save Money When Refinancing With Bad Credit

by: Louie Latour (November 23, 2006) 
(Real Estate)

Bad Credit Mortgage Refinancing: Working With Sub Prime Mortgage Lenders

by: Louie Latour (September 30, 2006) 
(Real Estate)

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

by: Louie Latour (November 29, 2006) 
(Real Estate)

Mortgage Refinancing With Bad Credit: What You Need to Know

by: Louie Latour (August 09, 2006) 
(Finance/Mortgage Refinance)

Bad Credit Mortgage Refinancing

by: Carrie Reeder (October 21, 2005) 
(Finance/Mortgage Refinance)