Are bad credit Re-Mortgages Impossible?
by John Hasley

Sub-prime mortgage lenders specialize in people like us, both for refinancing a current mortgage (also known as a re-mortgage) or buying a new home. Of course, there are a few things you should be aware of before you take advantage of one of these loans.

First, you should know that the lower your credit score, the more your re-mortgage is going to cost. The current industry average (sub-prime/bad credit re-mortgage industry) is 4%, but can go as high at 7%. This means that you, as a bad credit home loan borrower, are typically charged an average of 4% more than a borrower with good credit that’s getting into the same general loan program. This percentage can be in charged in a bunch of different ways, including interest, points, and a wide variety of “bad credit” fees.

Don’t think that the types of mortgages that you can qualify for are extremely limited, because you couldn’t be more wrong, they’re just going to cost you a bit more. You can even apply for a mortgage that allows you to take out extra money to pay off high-interest credit card bills and auto loans, if that’s what you need to help your financial situation!

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