Does anyone have a mortgage that has a high interest rate because you have bad credit? If yes, how it is.?

Deal Score0

My husband and I are trying to get a loan, but at home our credit is not good. His score is 601 and I 583rd is the only way for us to have a house immediately. We try to approve by a company in Ga. This is a ready 80/20. The interest rate is up in 2 years, but we have our credit device by then. We pay a lot rent today. Any info would be greatly appreciated.

3 Comments
  1. Reply
    Amanda H
    May 1, 2011 at 12:31 am

    580 is really the absolute minimum you want to have for a mortgage. Yes, you’ll have some high interest. I got approved back when our scores were pretty similar– the 80% part was a good rate– it will be the lowest available– like 6.75%. The other part will be between 11-14%.

    If you average the two together you’ll probably end up in the 8%+ range, with a prepayment penalty.

    This means even if your scores improve in a year, you’ll have to keep paying those sucky rates for another year after that.

    Also, your closing costs will be atleast 3-4% of the purcahse price– so make sure you take that into account with your loan amount.

    With the market like it is right now, you’re not missing out on much. Its not like it was 3-4 years ago, where if you wait six months the same house costs 20K more than it did before. So work the numbers and see if it makes sense to buy now or save for a year and improve that credit score.

  2. Reply
    Deirdre J
    May 1, 2011 at 12:58 am

    If you do not have any other mortagages or properties in your name, you may want to try http://www.naca.com

    NACA is a nationwide program that helps people fulfill their dreams of home ownership by helping you to organize your finances.

    They offer you an interest rate at 1% lower than the current national average and all loans are through Bank of America. So if the national avergae interest rate is 6.74%, you will only pay 5.74% for your loan. There is no down payment requirement. You are, however, required to go through a number of financial and debt counseling sessions.

    NACA’s goal is to eliminate the predatory practices of other loan companies that prey upon people who have had financial problems in the past. And NACA can be utilized by anyone, not just those with bad credit.

    If this interests you, check out them online at http://www.naca.com for full details.

  3. Reply
    gabriel s
    May 1, 2011 at 1:17 am

    Bad credit is one of the worst problems to have… however there exists a solution.

    I will hereby talk from my personal experience.

    I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
    if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

    a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

    http://umgarticles.atspace.com/debt-consolidation.htm

    if it helps kindly remember me in your voting!.. cheers!

    Leave a reply

    Register New Account
    Reset Password