There is a second wave of Adjustable Rate Mortgages that are getting ready to adjust to their new, higher interest rate. This means that if you have an ARM and you haven't yet refinanced and your mortgage is getting ready to adjust in the next few months, you might be looking at a substantially larger mortgage payment. What will you do if you have bad credit? Will you still be able to refinance your mortgage with bad credit?
Many financial experts are saying that if you don't have good credit, refinancing your mortgage may not be in the cards any time soon. According to Kiplinger's money magazine, if your credit isn't stellar, you may have a really hard time refinancing your mortgage, even if you need to.
This is causing more and more people to consider options such as loan modifications to help them to continue to be able to make their monthly mortgage payments. The good news for you if you have bad credit and want to refinance is that you may be able to based on your mortgage payment history. This will prevent any kind of credit check at all, because lenders only look at your payment history on your home.
If you have a strong payment history on your current mortgage and you need to refinance but have bad credit in other areas, you may want to talk to your current lender about refinancing at a lower fixed rate based of your payment history.
If your payment history isn't so great, however and you still need to refinance your current mortgage, your chances of getting a refinance with bad credit will dramatically improve if you have equity in your home and are only planning to borrow enough to cover the current balance of your mortgage. This helps lenders to ensure that you won't owe more than your home is worth and makes lending you money less of a gamble.
Andrew likes to write about refinance with bad credit on his hub bad credit mortgage refinance.
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