Finding a good lender to help you with
refinancing your home loan can be tricky if you have bad credit. There are
plenty of predatory lenders out there who would like to take advantage of
you with excessively high interest rates and fees. The key to finding a good
lender is to know what are reasonable terms and to compare lending
Look At Your Credit Record
Credit records are not perfect accounts. Before you apply to refinance your
loan, you should check to see that all your information is correct. If you
believe there is a false record, resolve it with the credit reporting
You also want to know what your credit score is. The lower the score the
higher rate you will have to pay, but at least you will have an idea of what
to expect from a lender. Paying three to five additional points is common
for people with bad credit history.
Lenders offer different rates for the same type of loan, so shop around. The
easiest way to compare quotes is to use an online website. By entering your
information online, companies compete for your loan, offering you better
rates. The internet also allows you to compare mortgage lenders outside your
local area, possibly finding a better deal.
Once you receive offers, compare the rates and fees. Often the fees are
where lenders make their money. Adding up the interest and fees, and
comparing that figure will give you the true cost of the loan.
Look For A Good Deal
Mortgage lenders increase their profits by pushing loans with high interest
rates and points. Some lenders will push these types of loans even if they
arenít best for you, so beware of fast-talking dealers. Be sure to read the
terms and look for hidden fees before you sign the paperwork.
Online mortgage companies eliminate some of this risk by requiring mortgage
lenders to state their terms online. Online quotes are also more competitive
since lenders know you are probably shopping around to refinance your loan.
Once you have an offer, print out the terms for your records.
About the Author: To see a list of recommended mortgage refinance
loan companies online, visit this page:
www.abcloanguide.com/refinance.shtml. Carrie Reeder is the owner of ABC
Loan Guide, an informational website with articles and more about various
types of loans.