Comeback Credit mortgage
Comeback Credit home loan is the Fixed Rate Mortgage that helps borrowers with bad credit lower their interest rate. As mortgage interest rates have gone up, no borrowers were hit harder than those with large debt and bad credit. Sub prime mortgage rates are getting into double digits. I recently quoted a 2-year ARM at 9.65% to someone with verifiable income and assets. The middle credit score was only 513. Imagine a borrower who is self-employed and writes everything off, so no income can be verified. Or someone who has no money in the bank. Sure they can still get a mortgage, but with the credit score below 580, interest rates will be close to 11%.
The Comeback Credit loan is not a new mortgage program, it is being currently rejuvenated by the sub prime lenders and has some merit. It will lower your rate each year by .375% for the maximum of 4 years. You must make each and every payment on time and in full. So you can lower your rate by 1.50% over 4 years. Considering that the rates will be likely going higher, the Comeback Credit loan is a good mortgage program to get. It is a Fixed Rate Mortgage and the initial rate can not be lower than 7.50% as of today, and rates can reduce to as low as 6.00%. Once lowered, the interest rate remains fixed at that lower rate for the remainder of the mortgage. If you are looking for a fixed rate and have credit and debt problems, with this mortgage you can't loose, as long as the initial interest rate isn't sky high. You will lock a fixed rate and have an opportunity to lower it, instead of getting an adjustable mortgage that will definitely go higher after 2 or 3 year fixed period. So if you start at 9.50% rate, after a year of full and timely payments, the rate will be 9.125%, which is going to save you $54 a month. After the second year, the rate becomes 8.75% saving you another $54 a month. After the third it is 8.375%, and after the fourth it is 8.00%. It can not go any lower afterwards, still saving you $216 on a monthly basis. Of course you can try refinancing if your situation improves and the interest rates do so too, anywhere within these 4 years. Check on prepayment penalties if any. This program is available on 15, 30, or 40-year Fixed Rate loans. Consult your mortgage broker or lender for LTV, credit score, prepayment penalties and other details.
Fri Jun 16, 2006 10:06AM | Copyright: www.bad-credit-advisor.com | More in Mortgage | Comments (0)
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
