How to Re-Finance Your Home With A Low Credit Score
Refinancing may be possible with a poor credit score, although you likely won't qualify for the lowest interest rate available. Consequently, the question is can you refinance on terms that make it worth your while? Before shopping for rates, commit to cleaning up your credit. This is the single most important step in re-financing your home so that it is the most beneficial for you, the homeowner.
"The difference of even adding 20 points to your score can end up saving you thousands upfront and even more throughout the lifespan of your loan."
Refinancing without doing so can be extremely detrimental. Homeowners who manage to refinance with low credit scores often end up with risky, high-fee adjustable-rate mortgages. Particularly tricky are the option ARM products, which on the surface look good to homeowners seeking to minimize monthly payments. The low teaser rates often do not even cover interest owed. The homeowners stay current and make the required monthly payments, but end up owing even more on the loan than when they started paying. When rates reset upward, some homeowners default on the loans and lose their homes.
So what is a good score, and how can you get there? If you currently have a score of 680 or lower, you need to seriously think about how much investing in credit help can save you in the life of your loan. The difference of even adding 20 points to your credit score can end up saving you thousands upfront and even more throughout the lifespan of your loan. Many lenders use 720, or even 740 as the cut-off point for the best interest rates. What may seem like saving money today could end up costing thousands in the long run.
The good news is, we're here to help. We have worked with thousands of homeowners looking to refinance that have had trouble getting the rates they deserve (or even getting approved at all) because of their credit. Our specialists work exclusively with professionals in the housing industry, and beyond restoring your credit we can even help you find the right mortgage broker to get you the best deals.
Don't hesitate any longer and get started on the path to financial freedom. Re-financing can vastly improve your current financial status, but don't let it hurt you in the long run! Let us ensure you are getting the best rates, and the best deal possible. Contact us today for a FREE consultation and credit analysis. Our specialists will give you an in-depth look into your financial strengths and weaknesses and develop a personalized plan for your specific needs.
Click Here to get your FREE consultation from our specialists. You have nothing to lose, and everything to gain.