Tuesday, March 10, 2009

How To Get The Best Mortgage Rates

First, make sure you are comparing current mortgage rates for the same type of mortgage. Mortgage rates and closing costs can change significantly from one day to another, so if you are comparing offers from multiple lenders it must be done on the same day. For example, if you are shopping mortgage rates and have a quote for a 30 year fixed at 5.75%, only compare it to other 30 year fixed quotes at 5.75%.
Next, compare the total of all points and lender fees for each mortgage (from section 800 to 813 on the Good Faith Estimate), that is the price of the mortgage. The lender with the lowest cost has the best mortgage rates.

If you are refinancing, you will also need to review the cost of title insurance, closing/attorney, and appraisal.

Is your credit rating a little shaky?

if it's time to renew your mortgage, you may be wondering if you'll have problems finding lenders. Depending on your information, it is certainly possible (and probable) to get mortgage refinancing with bad credit.

Do you really need a bad credit loan?

If the following statements apply to you then the answer is 'yes'.
  • You have a credit score of 620 or lower
  • You have missed two or more 30 day mortgage payments in the past year
  • Or you have had at least one 60 day delinquency in the past two years
  • You are struggling to meet your monthly expenses
If this describes your current situation don't panic, you're not doomed. You may well qualify for a bad credit mortgage refinance. In addition to the above facts, lenders take into consideration your home collateral and your ability to repay the loan. So, if your house is worth more than the money left owing on it and you can make your payments then you are probably a good candidate.

Believe it or not, there are even some positives to mortgage refinancing with bad credit.
  • A bad credit home loan may help you to avoid declaring bankruptcy
  • You may be able to free up some cash for home improvements
  • It gives you a fresh chance to repair your credit
  • It may be possible for you to consolidate your bills into one monthly payment
  • Mostly, it can relieve the feeling of burden and pressure
Once you've decided to go ahead and refinance your home, don't just start applying haphazardly. Repeated credit applications and credit checks can actually hurt your chances at getting a bad credit mortgage refinance loan. Before approaching any lender, do your homework.

The first thing that you need to do is get a copy of your credit report. You can get it from one of the three main reporting bureaus: Equifax, Experian, Transunion. Check the report over to make sure all the information is accurate. If you spot any mistakes, get them cleared up before applying for your loan. After you've done that, you'll have a realistic picture of your credit situation. It is copies of the final, accurate report that you need to give to the lenders when shopping for your bad credit mortgage refinancing loan. Do not let anyone do a new credit check on you until you've decided which lender you're going to work with.

Just because you're looking for a mortgage refinancing loan for bad credit does not mean that you shouldn't use caution. Search out reputable lenders online and request information. Be sure that they're licensed.

Once you've chosen a lender who offers you an acceptable rate, get the quote in writing. That will lock in the numbers so they can't change if interest rates do before you finish the application process. The only thing that can influence your pro-offered rate is if your credit score has changed from what it was on the copy that you submitted for the quote.
As soon as everything is finalized, you'll have your mortgage refinancing with bad credit. It really isn't that hard and the benefits can make your life easier.

About The Author:
Paul C Ewen is authentic author on Mortgage Refinance and if you would like more information on Refinance then be sure to visit my website. you will find some easiest stapes that you will understand in one sitting.