Many people want to take advantage of low interest rates and refinance a mortgage but fear they will not be able to due to bad credit. Well, for most people, that is not true. Even with bad credit, an upside down mortgage, or other financial hardships, getting help and approval for a mortgage refinancing is not that difficult. Here are some tips for homeowners looking for bad credit mortgage refinancing options.

While bad credit may end up costing you more in closing costs or interest rates, refinancing can still be beneficial. Especially right now with interest rates being near all time lows. Many mortgage lenders and banks are advertising 5% mortgage rates for typical 30 year fixed rate mortgages. This is a drastic drop from what interest rates were a few years ago. That means that even with the additional costs associated with a bad credit mortgage refinancing, many homeowners will still be able to benefit. Most homeowners with bad credit or other financial problems have interest rates that are much higher than 5% and that is how refinancing, even with bad credit, will help many people.

Also, right now President Obamas “Making Home Affordable” plan is making refinancing with bad credit a lot easier for millions of people. This housing stimulus plan was designed to assist struggling homeowners in getting an affordable home loan payment, and to help prevent people from losing their home to default or foreclosure. This plan provides money to mortgage lenders and banks who help homeowners. Since this plan is designed to help struggling homeowners, bad credit, upside down mortgages, and other financial problems are not going to stop someone from getting approved for a mortgage refinancing.

While bad credit mortgage refinancing may not be the easiest thing to do, it can be done. Especially these days with the Obama stimulus plan in effect. Take advantage of low interest rates and Government stimulus programs to save your home, a lot of money, or both.

-M Petrone

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