Can I refinance my home with bad credit?

Question by dara91562: Can I refinance my home with bad credit?
My husband and I need to refinance our home to lower our monthly payments. We are paying 9% right now. We both have bad credit. About 4 years ago we started getting behind and couldn’t make credit card payments. It was either pay them or pay our house payment. So I just didn’t pay them. We also have some unpaid medical bills that our insurance didn’t cover after the birth of our daughter. The creditors are always on our backs. In May we will be eligible to refinance our home (we had a prepayment penalty clause in our mortgage agreement). What chance do we have of getting a lower interest rate and lower monthly payments? Any help is greatly appreciated!

Best answer:

Answer by Yanswersmonitorsarenazis
You just have to start shopping around.

There’s dozens of subprime mortgage companies going bankrupt right now, so that entire market is going a little crazy at the moment. Rates and products will vary widely between different lenders, so call several. Get the first one to tell you your credit scores, maybe even get a copy of your credit report from him/her, and use that to shop from other lenders.

Know better? Leave your own answer in the comments!

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7 Responses to Can I refinance my home with bad credit?

  1. cmruffin1 says:

    it depends on how bad your credit score really is.

  2. Maria b says:

    I tried to do this and my cards were mostly paid off, but my credit was poor and I didn’t qualify for a good rate. I worked with a mortgage broker and wasted money on an appraisal but she couldn’t get me a decent rate and offered me a 30 year mortgage, I have less than 12 years on the ones I have now.
    It is so ironic that the banks give the best rates to those who have lots of money but charge the highest to those with the lesser incomes?? Makes no sense. I would be very careful, some have lost their homes to refinancing schemes.

  3. panthrchic says:

    If your beacon score is AT LEAST a 500, there are companies out there who will work with you, but if it’s a 499, no way, no how.

  4. Mary S says:

    The chances of you getting a lower interest rate and payment will depend on your current credit scores and the mortgage history. I work for a Mortgage Banker who specializes in providing loan programs for people who have damaged credit. There are several mortgage programs that will allow you to pay off all of the creditors and possibly extend your mortgage term.
    To find out what you would qualify for, you would need to complete an application and let a lender obtain a credit report. This can be done right over the phone.

  5. says:

    Ok what you want is a 30 year fix interest only Product. Than you want to find out how much equity is in your property to possibly do a debt consolidation meaning paying off all that debt and possible medical bills. Do always pay your house payment on time and never get behind which you have done. So great job. Will you get a better rate? I dont know because I dont know how much equity is in your home and what your FICO score is. Subprime Lenders are falling out weekly because of the changing of the market. Yet, your 9% which believe is very high could come down a little. Hope this little bit of information helps and any questions please email me.

  6. marshae says:

    You could check with a mortgage broker for that. I know of some if you need referrals. Also, after you refinance, and get your payments lower, you may be interested in this new program. It works well with a 30 year mortgage. I am currently using a HELOC with a new software program from United First Financial, called the Money Merge Account. This software helps build equity fast, and will help me payoff my home in less than half the time without refinancing, and without extra payments. It is saving me thousands in interest, and pays off home in less than half the years. Those who take an honest look at all the facts and figures from a reputable source will find that this system truly creates a significant advantage for homeowners. E-mail me if interested.

  7. gabriel jones says:

    Bad credit is one of the worst problems to have… however there exists a solution.

    I will hereby talk from my personal experience.

    I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
    if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

    a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

    if it helps kindly remember me in your voting!.. cheers!

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