Many Americans have a less than stellar credit history, but
there’s no reason to let bad credit stop you from doing something as large as
refinancing your mortgage. The world of mortgages and lending can be a
confusing place where very little makes sense. For the average person it’s
tough to know if you’re getting the wrong end of the stick so to speak. Don’t
let refinancing be a giant headache. Here are a few tips on refinancing your
mortgage even with a bad credit history.
The very first thing you want to do is clean up your credit
score as much as possible. This means avoiding making only the minimum payments
on your debt, pay your bills on time, paying off your credit cards and of
course limiting your spending with credit cards during this period. You should
obtain a copy of your credit score so you know exactly what you need to
improve. You should also check the report carefully because you have the right to
report any errors you find. Improving
your credit score can actually happen faster than you think so be persistent
and keep at it. You can also contact a company such as Ace Mortgage Loan Corporation
who help with the refinancing process.
As a general rule, your monthly payments, including
mortgages, auto payments, credit card bills, etc, should not exceed 43% of your
total monthly income. Getting your payments down to the 43% mark will help to
stabilize your credit and also give you more monetary assets. Having assets
will help in the long run by allowing you a more attractive mortgage rate.
You should also be aware that you don’t need to refinance your home without help. There are government programs designed to assist in the
refinancing process. HARP (Home Affordable Refinance Program) is designed for
those who are not behind on their payments, but have been unable to refinance
their home because of a decline in value. There are several qualifications you
must meet to be eligible for HARP. Another
program is HAMP (Home Affordable Modification Program), which is for those who
are employed, but still struggle to make mortgage payments. Both of these
programs are free of charge, but you should act quickly as they often take some
time to complete and they are set to expire on Dec 31, 2013.
Looking for a mortgage in Coral Springs, FL? Get help from
Ace Mortgage Loan Corporation.
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