Poor Credit Refinance Options

Do you want to refinance your mortgage but are not sure what to do because your your credit report is not what it should be?

Even though you may have been paying your current mortgage on time, your current bank may consider you un-financeable due to your credit score.You may possibly be having a hard time paying your bills no and a new lower interest rate could help you, but because of your credit score, no one is willing to listen.

You know that your mortgage rate is the lowest interest rate you are being charged out of all your debts. It is likely that the non secured credit accounts that you have are carrying interest rates in the high teens or even high 20% ranges.Ideally, you can consolidate all your credit cards and unsecured debt and put it all in with your mortgage.This has a benefit of only having to pay one person every month instead of writing out all those bills.The interest rate of your mortgage, as i mentioned above is going to offer the lowest interest rate of all your creditors, so this means your overall monthly expenditure will be cut down significantly. Which finally, of course, means that you will have more money in your pocket, peace of mind and be able to live life a lot happier!!In turn, this leads to less struggle for your and more happiness for you and your family.

This is all well and fine, but as we said in the beginning, no one seems to want to give a refinance mortgage because of your credit.Not necessarily.Government loans may be the answer.Your credit can’t be terrible with FHA. {The minimum credit score required is 580 which is pretty low.}

What If Your Score Is Even Lower?

In this case, you can do two things.

Begin cleaning up your credit. It will take a little time, but eventually your scores will start to climb.

If you are unable to take the time necessary to clean up your credit, then you make want to look at debt modification.

A debt modification program will cut your monthly bills roughly in half and can have you completely out of debt within 3 years or so. And your credit report will recover much faster than if you filed bankruptcy.