Wednesday, May 2, 2007

Refinancing in Spite of Bad Credit

For millions of Americans, a home mortgage provides a gateway to the American dream. It's more than shelter and a place to raise a family; it's also a sound financial investment. For those who've stumbled financially and incurred bad credit, a home mortgage can also be a stepping-stone to better and brighter days.
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While the knee-jerk reaction is to believe that you can't qualify for a loan just because you have bad credit, you'll be surprised at how many lenders have specific programs designed to get you back on your feet.
Bad credit mortgage, good common sense

There are plenty of lenders who are eager to provide a debt consolidation loan to a prospective borrower. From a business perspective, you can't argue with their rationale. They realize that if they can help you consolidate your debts and get your finances back in order, despite having a bad credit score, you'll likely be loyal to that lender when your credit rating is healthier.

Lenders understand that, even though you have bad credit, your life must go on. That's why they offer a wide variety of lending products. A first mortgage cash-out refinance allows you to tap equity for short-term cash while consolidating your debts. If you have a good rate on your first mortgage, you might opt for a second mortgage-a variable-rate home equity line of credit or a fixed-rate home equity loan. There are plenty of options on the market-shop around and find the one fine-tuned for your situation.

Bad credit doesn't have to be a lifelong nightmare. By using your home's equity to get a debt consolidation loan, you can turn your finances around and enjoy the same perks of the American Dream as all those credit A-listers

http://www.mortgageloan.com/refinancing-in-spite-of-bad-credit