Bad Credit Mortgages

Bad Credit Mortgages

Bad Credit Mortgages - Just because your credit isn't perfect doesn't mean you should miss out on the opportunities available to everyone else. You can get relief from high mortgage and interest payments with low credit score mortgage, but you can also get much more.

Bad credit mortgages give you the chance to clean up your credit. Consolidate all your bills into one, low monthly payment with bad credit home loans. Get relief from the harassing calls of creditors.

Bad credit mortgages provide a way to live your life without worrying about every penny you spend.

If you need extra cash. Bad credit home loans give you what you need for home improvements, back child support, late payments, or a much needed vacation. Bad credit home loans can even give you the leverage you need to avoid bankruptcy and more.

Bad Credit Mortgages - Group Rates

You can get group rates if you enlist four or more of your house-hunting friends. These group-rates are known in the business as bad credit mortgages, ask your lender how you and your friends can get a hold of bad credit mortgages.

If a buyer has a bad credit rating the mortgage lender will be able to determine this from a credit report as soon as you apply for a mortgage.

Bad Credit Mortgages are still available from certain mortgage lenders most probably at a higher rate of interest and definately with premium mortgage insurance from a private company.

Poor credit ratings are caused by disliked financial practices such as defaulting on payments, making late payments, declaring bankruptcy or exceeding credit card limits. The best way to overcome a bad credit rating when applying for a mortgage is to let the mortgage lender know of your bad credit history and explain the circumstances leading to these problems rather than remaining silent.

Mortgage Companies - specializing in Bad Credit Mortgages

There are mortgage companies that provide bad credit mortgages on a regular basis but it is always best to search for a company that specialises in bad credit mortgages which will increase the chances that you will get the mortgage you are after.

Every time you apply and are turned down for a mortgage it will be recorded on your permanent credit record and will only make it that much harder for you to apply for any sort of bad credit mortgage in the future.

Probably the single most important factor to look for when shopping for a home mortgage is the annual percentage rate, or the "APR." The APR includes all the costs of credit, including such items as interest, "points" (fees often charged when a mortgage is closed), and mortgage insurance (when included in the loan). Lenders must disclose the APR under the Truth in Lending Act. The lower the APR, generally the lower the cost of your loan. Advertisements that state other rates such as "simple" interest rates, do not include all the costs of the loan.

If you shop for a mortgage loan with interest rates or payments that change, be sure to compare:

  • initial interest rates

  • the cap or how much the interest rate can increase/decrease over the life of the loan, and how much the rate can change at each adjustment

  • how often the interest rate can change

  • how much and how often the monthly payments and term of the loan can change

  • what index is used to determine the rate changes

  • what "margin" is used -- or how much additional a lender can add to the adjusted interest rate

  • the limits, if any, on "negative amortization" the loss of equity in your home when low monthly payments do not cover in full the interest rate charges agreed upon in the mortgage contract and any "balloon" payments a large payment at the end of your loan term, often after a series of low monthly payments.

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