Question by : Can you refinance a mortgage even if you have bad credit?
I only owe $ 39,000.00 on a home worth $ 150,000.00. It is a loan through Beneficial at 12.5% interest. My credit is bad due to the fact I assumed my deceased father’s bills. I would like to refinance my mortgage and get some cash out to pay off all my bills. I have a good income now.
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If you have good income and you certainly have equity in your house so a refinance should be no problem for you. Certainly you would get a better rate than 12% but what you need to consider is the cost of refinancing. There are legal fees and lots of paper costs. I previously remortgaged and these fees came to an added $ 10,000. to my mortgage. Be careful what you do.You may want to look into
streamlining your mortgage which usually has minimal fees and just lowers your rate. A home
equity loan will help with bills. I am concerned with why you have your deceased fathers bills. Both
my parents have passed and my attorney says that I and my siblings are not responsible for their bills. Though collectors will try anything. Shop around!!
You can having the worse your Credit & corresponding FICO Credit Score the higher APR you are likely to pay, nevertheless considering that you have sufficient equity & stable income is likely that you would qualify.
What I fail to understand is how you are responsible for your Father’s bills.