The average American homeowner refinances their mortgage every four years. Why not just get a mortgage and stick with it like your parents did you ask? Homeowners are finding that as their financial situations change due to higher incomes and better credit, doors are opening to them that may have been closed before. This is especially true for homeowners with poor credit. Here is how you can use your mortgage to rebuild credit, consolidate debt, and get yourself back on track with your finances.
cash loans no credit check, cash loans without a bank account, online cash loans,
Mortgage Refinancing 101
When you refinance your existing mortgage you are simply taking out a new mortgage to pay off your old loan. The process is nearly identical to what you went through to get your original mortgage, including many of the costs. There are a number of good reasons for refinancing your mortgage, not just to lower your interest rate and payment amount.
If you have poor credit, you can use the equity in your home to rebuild your credit by consolidating your high interest debt into your mortgage. You can accomplish this by taking cash back; this means you are borrowing more than you owe on your existing loan with the new mortgage. Once you close on the loan you will get the excess back in cash to pay off your bills. By paying off your existing debt and focusing on paying all of your bills on time you will be on track to rebuild your credit in as little as two years.
How to Refinance with Poor Credit
Refinancing your mortgage with poor credit is more difficult; however, if you do your homework and research lenders you can find competitive offers for your new mortgage. Your goal for refinancing is to rebuild your credit, if you have to accept a slightly higher interest rate or less than desirable terms you will be able to refinance with a traditional mortgage lender once your credit has improved. You only need to keep the bad credit loan for two years. Two years is enough time to significantly improve your credit score if you use credit responsibly and pay all of your bills on time.
You can learn more about your mortgage options and rebuilding your credit by registering for a free mortgage guidebook.
Look For Fast Cash Up To $ 1500 Online. You Will Receive Cash Immediately. Get Approved Fast. Apply Online Today!
Rating of same day cash loan
Get Online Application at online payday loans.
