There have never been as many people facing financial difficulties all at the same time as is happening now in America. Credit cards, auto loans, mortgage payments, tuition, all types of debt really have the ability to hinder you financial future if ignored. Or worse yet, you may find yourself just not able to make ends meet every month and some bills have slipped by without being paid. A possible solution to this, and something that will no matter what free up extra money every month, is refinancing a mortgage. Mortgage refinancing applications have sky rocketed over the past few months due to homeowners looking to take advantage of the all time low mortgage rates sweeping the country. Guess what... refinancing a home or condo mortgage with bad or risky credit is possible too, though may require some extra work on your part. Just because you have a bad credit score does mean there is nothing you can to to fix it. Bad credit refinancing requires patience and persistence.

Many people have gotten themselves into a mortgage with sky high rates. A lot of people during the housing boom got themselves into a new home with little or no money down. This resulted in their mortgage rates being higher then necessary. Now they are having a hard time paying that higher payment and are looking into refinancing. It is very hard to get out from mountains of debt with a high mortgage payment. Sometimes when you initially bought your home, your credit score was worse than it is now a few years after home ownership. However, most homeowners tend to improve their credit since purchasing their home. If this is the case for you, you are a prime candidate to save a lot of money by refinancing your mortgage.

In the search for potential loan companies to pursue a refinance with, you will want to check that they have a special department, or certain individual, who works with homeowners with bad credit and lower FICO scores. The reason it is important the company you are looking into specializes in this is because these companies should have the contacts and experience necessary to work with someone with bad credit and still use their experience and industry connections to get you the best refinance terms possible. Although, it may cost more to use special bad credit mortgage services, these extra costs are almost always negated in the savings acquired in the refinancing. These lenders will be able to get you the best rate possible, even if you have applied for bankruptcy or are facing foreclosure on your home. Even refinancing out of an ARM (Adjusted rate mortgage) into a more stable fixed rate loan is not out of the question. Many people have been stuck with an ARM loan and have recently seen their mortgage payments dramatically increase as the housing boom came crashing down. If refinancing into a fixed rate mortgage, make sure to use the time in between mortgages to fix and pay off any credit problems you can. Even improving your credit score a lot can save you hundreds in unnecessary interest fees.

Refinancing a home or condo mortgage with bad credit can be done. Although it is harder than typical mortgages, it is not impossible and is often a good first step to financial stability. Refinance your mortgage today and take advantage of the all time low mortgage rates in 2009.

-M Petrone

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