Question by kristina1031: Mortgage loans for bad credit?
Hi. I am currently trying to take out a mortgage on my home to pay off some bills, etc. My x husband left me in so much debt that my credit is completely ruined. So far the only offer I have is for a ,000 at 13 percent interest. Which turns out to be almost 0,000. I know its a lot of money but I have no other options. If I go ahead and take out the loan for now, is it possible for me to refinance it once my credit gets better at a lower interest rate? I have never dealt with anything like this so any information would be very helpful! Thank you.
Best answer:
Answer by src50
Think carefully! That is an extremely high interest rate, plus you will be exchanging unsecured debt for secured debt (your home, which will be at risk). You need to consider your total financial situation – income, employment, amount and types of debt.
What do you think? Answer below!
See a bankruptcy lawyer before refinancing. “Bad credit mortgages” caused all these bank failures you keep hearing on the news, so if you can even get one, you will pay through the nose for it. Depending on the state you live in, you may be able to file bankruptcy and keep your house.
Talk to your local banker.
If it puts you in a better situation then do it, if you pay off your credit card debt DONT CHARGE IT AGAIN, keep it open and charge small amounts (50.00-100.00) to keep them active and reporting, your credit score will increase and you can refinance in a few years, also if you have more to put towards the P&I payment (principal and intrest) then the affective rate will be much lower. add up all your bills, house, credit cards ect. everything that you are paying off, if the new loan has a smaller payment then it’s going to put you in a better financial position, remember, you dont have to keep the loan, make sure to look out for early payoff penaltys as well.
good luck