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Can I refinance into a lower rate with bad credit?

I want to refinance my 305,000 home to a lower rate, the LTV is around 70%, but my credit has dropped down to 670-705 credit score with some extra debt. It was around 740 when I got my home originally, and my debt to income ratio has increased. Am I still capable of getting a refinance into a lower rate or am I not able to do so? What other information do I need to give? by laura._787_859 from Prescott, Arizona. Dec 16th 2011 Reply


Brent Sullivan (brent@mortgagemind.com)
#78 ranked lender in Arizona - 1 contribution

From what you have told me, I don't see any reason why you could not refinance your current mortgage. Your LTV looks good and your credit score looks good. I will need to run your debt to income ratio. Other information I would need is a one page application filled out. As the largest locally owned mortgage broker in the state of Arizona, Homeowners Financial Group scrutinizes hundreds of programs drawn from a large number of lenders, locally as well as nationally. With 26 years in this industry, my experience will save you money, time and potential pitfalls.And, we offer the absolute rock-bottom lowest rates & fees, guaranteed!~Brent Sullivan, 480-620-7300, brent@mortgagemind.com

Dec 16th 2011
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Blake Kleckner (BlakeK)
#387 ranked lender in California - 258 contributions

You don't have bad credit and should be able to qualify for a refi as long as your DTI and LTV are in the right place. Your loan may be a bit costlier because of your FICO score, but it doesn't preclude the possibility of you still being able to get an excellent interest rate. It would be helpful to know your current interest rate and loan balance, the price you paid for your home, and when you purchased it. Please contact me, Laura, and I will tell you exactly what to expect. Just click on my picture for my contact info.

Dec 16th 2011
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

As long as you have not been late on your mortgage, refinancing should be fairly easy for you. Although a 705 credit score is worse than a 740 credit score, it is still a great score. I would be happy to work with you to show you the options taht are available and help you determine which program best fits your plans. Give me a call, I'm in Chandler. You can call me direct at 480-889-9000 or use my toll free 888-889-9950. Check out my website www.LoansA2z.com for additional information. I look forward to working with you.

Dec 16th 2011
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Don McCarty (donmccarty.pfa)
#34 ranked lender in North Carolina - 53 contributions

Something else to consider when Deciding to Refinance. Traditionally, the decision on whether or not to refinance has meant balancing the savings of a lower monthly payment against the costs of refinancing. But in recent years, companies have introduced "no cost" and low cost refinancing packages that minimize or completely eliminate the out-of-pocket expenses of refinancing. (These refinancing packages compensate with a higher interest rate, or by including some of the costs in the amount that is financed.) With traditional refinancing, the most often cited rule of thumb is that the interest rate for your new mortgage must be about 2 percentage points below the rate of your current mortgage for refinancing to make sense. However, with the newer low and no cost refinancing programs, it can be worth your while to refinance to obtain a smaller reduction in interest rates. How long you expect to stay in your home is also a factor to consider. If you'll be moving in a few years, the month to month savings may never add up to the costs that are involved in a refinancing. Email additional questions to DonMcCarty.pfa@gmail.com Thanks!

Dec 16th 2011
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