Sub prime mortgage refinancing is a great option for many homeowners who want to save money, but do not have the credit to use a traditional lender. While mortgage rates are typically higher, the savings can easily outweigh the costs. Here are some advantages of using a sub prime mortgage lender:

The Advantages of a Sub Prime Mortgage Lender for Refinancing
While a traditional mortgage lender may be the best option for homeowners with perfect credit, this is the real world. Many homeowners have bad credit, but want to take advantage of low mortgage interest rates. Homeowners will find that getting approved from a sub prime mortgage lender is much easier than from a prime lender.

Sub prime mortgage lenders often have higher interest rates, may require private mortgage insurance (PMI), or have a prepayment penalty in them. However, the advantages of a sub prime lender is many more home loan refinancing options, with a bigger choice in loan type, conditions, and terms. Homeowners with bad credit may only have 1 choice, if any, from a prime mortgage lender. That same homeowner could the services of a sub prime lender, and easily be offered a multitude of offers, loan types, and deals.

Each persons financial position is different. Everyone will not benefit from this type of lender. However, many homeowners in todays economy, need the services that these sub prime lenders provide. Do not automatically write off refinancing due to having to pay a little higher interest rate. In many cases, homeowners who can save just 1% in interest will a pretty decent savings every month on their home loan.

-M Petrone

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