If Your Credit Is Low, Can You Still Get A Mortgage?


Visitors: 294

Every one has some financial tough times in life. Some people go through rough divorces; others have medical bills that pile up. Often people are unable to pay their bills on time. If this is your situation, and you have dreamed of owning a home, don't give up hope. You can still get a mortgage.

A good credit score is 620 or above. If yours falls below that, your mortgage is considered “subprime". Don't worry if that sounds “bad" to you, it just means that there are a few differences between your mortgage and a mortgage for someone with good credit:

1. Your interest rate will be higher. How much higher really depends on why your credit score is low. If you have failed to pay your rent or previous mortgage on time, that holds a lot more weight than a late medical bill or credit card payment. Mortgage lenders will take these factors into consideration.

2. Your loan is more likely to have a prepayment penalty. This means that if you pay off your loan early or decide to refinance, you may have to pay an additional fee.

If you are considering a “subprime" mortgage, be careful that you do not get taken advantage of. Check your credit score yourself to be sure that the lender is being honest. Also, get a couple of different quotes so that you know you are not getting a sky-high interest rate. Only shop with reputable mortgage companies. Some of these companies are listed on www.mortgage-refinancing-online-guide.com/resources.php. Above all, remember that it is possible to get a mortgage and buy the home you have been wishing for.

Casey Smith has worked for years in the mortgage industry. He writes often for the popular website http://www.mortgage-refinancing-online-guide.com


Article Source:

Rate this Article: 
Mortgage Refinancing – Mortgage Companies Frequently Low Ball Third Party ..
Rated 4 / 5
based on 5 votes

Related Articles:

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

by: Sharon Listner (January 05, 2007) 

Low Credit Score Mortgage Loans

by: Carrie Reeder (November 14, 2005) 
(Finance/Mortgage Refinance)

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

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

Low Income? Credit Problems? How Your Credit & Income History Impacts Your ..

by: Carrie Reeder (November 28, 2005) 
(Finance/Mortgage Refinance)

Bad Credit Loan on Mortgage Guarantees You Low Rates

by: Mary Wise (January 02, 2007) 

Low Credit Score Mortgage Loans - How to Get a Better Loan Rate

by: Carrie Reeder (December 31, 2005) 
(Finance/Mortgage Refinance)

Home Mortgage Loans for People with Bad Credit - Finding the Best Low Rate

by: Carrie Reeder (January 04, 2006) 
(Finance/Mortgage Refinance)

Low FICO Score and Bad Credit Mortgage Refinance Applicants Are Approved and ..

by: Bill Burress (June 23, 2008) 
(Finance/Mortgage Refinance)

Bad Credit Mortgage - Mortgage Loans For People With a Poor Credit Rating

by: Apurva Shree (June 27, 2008) 
(Finance/Mortgage Refinance)

Mortgage Refinancing – Mortgage Companies Frequently Low Ball Third Party ..

by: Louie Latour (January 24, 2007) 
(Real Estate)