Can I refinance a mortgage even if you have bad credit?

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I only owe $ 49,000.00 on a home worth $ 143,000.00. It is a loan through Beneficial at 12.5% interest. My credit is bad due to the fact I assumed my deceased father’s bills. I would like to refinance my mortgage and get some cash out to pay off all my bills. I have a good income now.

4 Comments
  1. Reply
    Rick B
    January 23, 2011 at 7:02 pm

    1) why would you assume his bills? Anything not paid by his estate could have been closed out and deemed uncollectable. You were not required to pay those.

    2) If you have bad credit, then you can try but you will likely get the same rate. Your credit determines your rate. That being said, A 14% ortgage is OUTRAGEOUS. That is 3 times the going rate!

    It never hurts to try. If you don’t like the terms they offer, then don’t do it.

  2. Reply
    Al
    January 23, 2011 at 7:31 pm

    You can re-fi at any time, but be advised that Credit score is every tingg. You could end up paying a higher rate. Since you have over $ 90,000 in Equity in the house, you might consider drawing on that by taking out a “Home Equity” Loan. The market value of the property will guarantee the loan amount, and you’ll be using the house to pay off bills, but won’t have to go thru the requalification or credit process. Talk to your bank’s load officer, Tell hime what you want to accomplish, and ask for his recommendations. Armed with that info, go to another nonaffiliated institution ( i.e. Credit Union) and do the same thing. The information you receive will help you decide which is best for you in the your current situation. You have a great deal to offer, so don’t accept the first offer. Good Luck.

  3. Reply
    Landlord
    January 23, 2011 at 7:39 pm

    You can try, but expect the interest to go up, not down. It does not matter what the value is if it looks like you are unlikely to pay. I doubt you will get much cash.

  4. Reply
    Abenchinism, Abey
    January 23, 2011 at 8:03 pm

    You can definitely refinance. Why? You have position yourself for a better consideration and qualification as your income is now in good condition.

    Meanwhile, I will suggest you take the steps below:

    1. Most mortgage lenders (reliable) will listen to your case as you have an obstacle that affect your mortgage. So Sit your lender down and discuss your issue

    OR

    Log on to mortgageloan.com (their aim is to help refinance bad credit)or e-loan.com for potential lender, and fill their online submission form as.

    Review eash offer and consider the best one for you.

    but be wary of some lenders. you can log on BBB website for check any preferrable lender.

    2. Then, provide all necessary details.

    I hope this helps.

    You can check below for more ideas, tips, and advice on mortgage refinancing and bad credit.

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