Refinance with Bad Credit: A How-To GuideArticle Posted by Expert Author: Tony Caro on 11/22/2013
It is completely possible to refinance with bad credit, but chances are that you will not able to qualify for the low interest rates. But still it is not entirely impossible to get a good deal out of home mortgage refinancing. There are some things that can be done to ensure that your refinance is as beneficial as possible. First of all, start cleaning up your credit before even thinking about shopping for refinance rates. Commit yourself to paying all the bills on time, making more than the minimum payments on credit cards and any other debt.
In order to recover your credit score, it is important to ensure that there aren’t any errors on your credit report. Also, limit your spending on existing credit lines and don’t get any new ones, so no new credit cards or loans for at least 6 months before you refinance your mortgage. Additionally, work on reducing your debt-to-income ratio to make yourself more appealing to lenders. So make sure that all your debt payments and mortgage expenses are no more than 43% of your gross income. Just make sure that you have a stable income history as well as some liquid assets to demonstrate your ability to make additional payments if the need arises, and you will be able to easily swing morgage refinancing with bad credit.
Article Posted In: Refinance Home Mortgage