Mortgage Refinance Loan With Bad Credit - How A Low FICO Credit Score Affects You

 


Visitors: 332

The Fair Isaacs Corporation (FICO) pioneered a system of scoring your financial health, known as your FICO score. Your FICO score is a number ranging from 300 to 850 with 300 being the lowest credit score that you can have. The higher your FICO score - the better. Statistically only 1% of Americans have a credit score below 499. The median FICO score is 723. Any score around this range is considered a good FICO score whereas a credit score below 600 is considered a poor credit credit score - be it 450, 500, 550, 580 or 600.

If your credit score is below 600 or slightly above, most prime mortgage lenders will be hesitant to extend you a mortgage refinance loan after they pull your credit report. Chances are your credit report shows a history of Chapter 7, Chapter 13 bankruptcy, chargeoffs, 60 day late payments, 30 day payments, etc. These negative records on your credit report will lead the mortgage lender to assume that there is good chance you will not pay your monthly mortgage payments on time or in full.

So can you get a mortgage refinance loan with poor credit? The answer is YES. You will need to research reliable and trustworthy subprime mortgage loan lenders. These lenders also offer bad credit home equity loans, HELOC, second mortgage refinance loans and debt consolidation loans. The interest rate on your loan will be slightly higher than the interest rate that a person with a higher FICO score would get but don't let this deter you from taking advantage of the equity in your home.

Remember that your FICO score is a snapshot of your financial situation at a specific point in time. It will increase, if you pay your bills on time.

Research bad credit refinance loans and subprime mortgage lenders, who provide bad credit refinance loans, HELOCs, Home Equity Loans, Debt Consolidation Loans and Cash Out Refinance Loans.

Sharon Listner writes about finances and conducts in-depth analysis on various consumer loan products. For more information about bad credit refinance loans, visit the loan resource guide at http://www.kstreetloans.com.

(348)

Article Source:


 
Rate this Article: 
 
How To Get A HELOC Loan With Bad Credit Or A Low Credit Score
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Refinance Mortgage: Your Credit Score Affects Your Mortgage and How to Build ..

by: Louie Latour (September 21, 2006) 
(Real Estate)

Texas Bad Credit Refinance Loans-Getting a Refinance Loan with Bad Credit or ..

by: Alexandra French (January 17, 2007) 
(Finance)

Bad Credit Mortgage Loans - How Does Your FICO Credit Score Affect Your Loan ..

by: C.L. Haehl (February 08, 2007) 
(Finance)

Bad Credit Mortgage Loans Online - How Your FICO Credit Score Can Affect Your ..

by: Carrie Reeder (August 11, 2005) 
(Finance/Mortgage Refinance)

How Your Credit (FICO) Score Affects Home Mortgage Loans

by: Bryn Andrews (June 11, 2008) 
(Finance/Home Equity Loans)

Bad Credit Mortgage Refinance UK - Convenient, Low Interest Option For People ..

by: Amanda Pane (August 16, 2006) 
(Finance/Mortgage Refinance)

Good FICO Credit Score? Tips to Getting the Most Out of Your Home Mortgage ..

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

Poor Credit Home Mortgage Loans - Getting a Loan with a Low Credit Score

by: Carrie Reeder (January 07, 2006) 
(Finance/Mortgage Refinance)

Tips on Getting a Debt Consolidation Loan With Bad Credit or Low Credit Score

by: Sharon Listner (December 28, 2006) 
(Finance)

How To Get A HELOC Loan With Bad Credit Or A Low Credit Score

by: Sharon Listner (December 28, 2006) 
(Finance)