Homes in Atlanta, Savannah, Athens and surrounding areas have appreciated to allow homeowners to take cash out of their homes, via home equity loans or home equity line of credit loans, to finance home improvement projects, credit card debt consolidation, education, etc.
If you live in Georgia and you need a mortgage refinance loan but you are worried about bad credit – know that it is possible to get a HELOC or Home Equity Loan, even with a low credit score be it 450, 500 or 550.
What is your FICO credit score?
Your FICO (Fair Isaac Corporation) score is number between 300 and 850, that indicates your financial health. A good FICO score is a score above 670, while a poor FICO score is a score below 620. Different lenders vary of what they consider a “fair” credit score versus a “poor credit score” – this
can be a gray line.
Having a good credit score allows you to get credit on competitive terms – good interest rates, exciting new loan products, credit cards, etc.
If you have a low credit score below 600, you will need to find a subprime refinance lender, who works with people with bad credit, whether it is due to poor debt management or a history of Chapter 7 or Chapter 13 bankruptcy.
Not all subprime lenders are created equal. The best lender is a lender, who is willing to look at your specific situation and find you the best loan product. Even though, you may have a low credit score, you may also have good equity in your home. Some lenders even offer up to 125% LTV (Loan-to-value) loans, if you qualify.
By: Alexandra French
Posts Tagged ‘Equity Line Of Credit’
Georgia Refinance Loans With Bad Credit in Atlanta, Savannah, Augusta, Athens, Columbus, Macon, etc
December 23rd, 2009Lowest Interest Rate Mortgage Refinance Loans – 3 Ways to Get a Low Rate Refinance
November 24th, 2009
The lower your interest rate on your refinance mortgage, the more money
you will save. But not all refinance loans are created equal. To get
the lowest interest rates, follow these three tips when applying for you
refinancing.
1. Refinance Your Entire Mortgage
Refinancing your entire mortgage will help you to qualify for the
lowest rates. Having split mortgages or a home equity line of credit
elevates your risk level and rates.
However, if you have a really good rate on one mortgage, then you may
not want to combine those mortgages. Take the time to request quotes for
both loan situations. Within minutes, you can get an answer from
lenders and know which is your best option.
2. Don’t Cash Out Your Equity
Cashing out part or all of your home’s equity will also raise your
refinance rates. So keep that equity in place while you apply for
refinancing. It acts much like a down payment did for your original home loan.
The larger your equity, the better your rates.
If you want to tap into your equity, consider applying for a separate
loan after you refinance, like a home equity line of credit. That way
you won’t be paying a higher rate on your entire principal.
3. Lower Your Rate With Points
As with your first mortgage, you can lower your rates by buying points.
This is a bit risky in that you have to keep your loan for seven years
usually to recoup the cost. To make sure this is your best choice,
compare lending offers. Calculate the cost of points and your potential
savings.
In addition to these tips, comparison shopping will also help you get a
lower interest rate. Each lender looks at refinancing applications
differently, so with careful searching, you can get a better deal. Start by
requesting a loan quote, then compare numbers, both interest and
closing costs.
Just remember that the lowest interest rate will not always be the
cheapest loan. Factor in the cost of fees to be sure you will come out on
top, especially if you plan to sell or refinance in a couple of years.
By: Carrie Reeder