Bad credit mortgage can be harder to get
If you obtained bad credit mortgage few years ago, chances are you have a high rate that has been fixed for 2 or 3 years, as vast majority of bad credit mortgage loans were 2/28 or 3/27 adjustable rate mortgages. Your interest rate is likely to jump once the 2 or 3 year fixed rate period expires. We really hope that you have fixed credit, had more assets, generated more money or gained enough equity in your house. This may be crucial if you need to refinance you mortgage in a near future. After several years of rather relaxed requirements with large number of mortgage programs that were introduced with the only purpose of generating more business for the lenders, the underwriting guidelines and standards have come under government scrutiny and are likely to get more stringent. Some programs may simply disappear. Bad credit mortgage will be much harder to obtain. So if you qualified but barely few years ago, doesn't mean you do it again. We are not here to scare you, but bring it to your attention.
The other rising mortgage related problem is cash-out refinance, when no appraisal company will give a needed value. The days when housing appreciated at least 1% on a nightly base are long gone. We came across several cases when people needed the money simply to pay rather sizable real estate tax amounts on the investment properties and weren't able to get anywhere close to what was needed. As they have taken money several times, the equities in these homes got too depleted. Bad credit or not, if you need a mortgage soon and have some doubts, check with your lender, broker, appraiser to see exactly where you are.
Thu Jun 8, 2006 03:06PM | Copyright: www.bad-credit-advisor.com | More in Mortgage |
Recent Entries
- Capital One Secured Credit Card to Improve Credit Score - Review
- How to get approved for mortgage - loan approval help
- Spouse average FICO credit score is higher?
- Why average credit score?
- Getting mortgage after bankruptcy - go FHA
- Debt settlement and how it affects credit score
- Debt settlement with Citibank
- Can I settle with credit card company with no late payments?
- Credit card limit lowered, credit score goes down
- Gold price will rise in 2011
