Start Poor credit consolidating mortgage

Poor credit consolidating mortgage

It's true that they get paid a small slice of every mortgage they help originate, but because lenders offer them discounted terms, it usually evens out in the end for the borrower.

That way, you have a better idea of what your chances are of refinancing, what sort of rate you may have to pay, or how much you need to improve your score to get a better rate.

And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward –- and free. " Low mortgage interest rates have created a great opportunity for many homeowners to refinance their mortgages, resulting in lower monthly payments or extra cash to pay off debts.

» MORE: Check your free credit score FHA loans require an Upfront Mortgage Insurance Premium. In addition, a monthly mortgage insurance premium must be paid as well.

The amount of the monthly premium will depend on the loan amount.

But if you have an interest-only or option-ARM, you could end up with dramatically higher payments if you don't refinance.

The key to refinancing with bad credit - or any time you're looking for a mortgage, in fact - is to shop around.

Different lenders and brokers cater to different parts of the market, and some of them specialize in loans to people with weak credit. Obtain your credit score (more on that below) and contact 6-10 lenders and see what sort of terms they offer.

Include several mortgage brokers in your list - brokers don't actually make loans themselves, but work with a variety of lenders to find the best rate and mortgage terms for you.

It also makes sense to refinance if you have an ARM that's about to reset to a higher rate or require a balloon payment..

Because interest rates are currently low, it isn't likely that a regular ARM will reset to a significantly higher rate right now.

Credit reporting agencies recognize that people may inquire at multiple lenders when shopping for a loan and don't mark down scores for multiple credit inquiries if they occur in a short period of time, say a month or two.