Would a mortgage company refinance one of it’s mortgage customers that has bad credit?

Question by Slim Mike: Would a mortgage company refinance one of it’s mortgage customers that has bad credit?
Current APR 6.375
Would like to refinance around 5% APR

With lates and a few charge offs from 5 years ago, would a mortgage company do a refi for one of it’s existing mortgage loan customers that has a weak credit score?

Best answer:

Answer by falsifiable
Not likely. You would think it makes sense because you are more likely to meet a lower payment. However, the way mortgages are financed makes this a terrible deal for the bank. They cannot sell your new loan when the borrower has poor credit.

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