Even if you have low credit, you can still refinance your current property. I know it’s hard to believe, but you believed you were stuck because no one wants to help someone who is depressed. They usually do everything they can to keep you down. Things have changed recently since interest rates are so low that your lender may be prepared to assist you without giving you undue stress.
Your lender cares about you paying your monthly mortgage payment in whole and on time. They will do it even if it means deducting a small amount from the interest. They are not interested in your home. They’ve accumulated so many that they can’t even count them. One extra house is the last thing they want.
To refinance your home and get out from under certain bills, ask your lender to assist you in learning how to rebuild your credit. You will gain if they start considering you as a person rather than an account number. Because the prime interest rate is currently so low, you can save hundreds of dollars every year on your monthly mortgage payment.
Remember that your lender is unlikely to agree to do this right away when you ask. To assist them in making their decision, they will need some information from you. Before they will even consider saying yes, they will need proof of your income, how much debt you have, and all three credit scores.
As before said, the prime rate of interest has lately decreased, which is good news for you if you need to refinance. When you refinance, you will almost pay a higher interest rate, but rest certain that you will not pay as much as you would if the interest rate had not decreased at all. If you don’t currently escrow property taxes or insurance, you can be required to do so with a refinance, as you would with a loan modification.
If this occurs, your monthly payment may not alter, but you will have the peace of mind of knowing that your property taxes and insurance are covered with every payment.
So, what if your lender determines, after a thorough analysis, that you are still a risk and rejects your refinance application? Apart from figuring out how to make the monthly mortgage payment on time, the first thing I’d do is contact the state to find out how long it will take to foreclose and what to expect.
Then you must focus on saving money to fund your move over everything else. So pay your bills on time, but if your lender is about to foreclose, save your house payment for a few months to put toward your new rental. Examine your finances and make a few changes as workable. Remove payments that you don’t need to make and strive to lessen the ones you do. Self-repairing your finances can provide a great sense of relief and satisfaction. Refinancing with your current lender is out of the question, especially if your lender believes you are too risky due to your terrible credit.