No body likes to have a bad credit history. You just land into it either without even realizing its harm or due to uncontrollable circumstances like sickness, accident or any other mishap. Does that mean you are now shunned from all the benefits available to a normal borrower and you will be now forced to pay high two-digit interest rates only? Fortunately, the scenario is not so bad. You can still avail consolidation mortgage loan and save some cash. With this saved money, you can pay off your debts faster and also meet you family’s daily needs.
Chance To Get The Debt Off Your Back Faster
Is there some magic? No. The key is reducing the home loan interest rates. Everybody wants to move to the lowest interest rate possible and save money. Even if you have bad credit history, you can get refinance mortgage loan which has lower interest rates as compared to credit cards or unsecured loans. You can get your home refinanced and use the home equity to pay off the high interest debts. Lower interest rates decreases the monthly repayment amount for same borrowed money. Isn’t it great?
Consider Refinancing Carefully
Before jumping straight head on into a home refinance, you must know that it involves some fees and costs. The common fees are application fee, broker fees, inspection fees etc. These fees are generally paid at the closing time. These are not mandatory or fixed fees. You can negotiate with the lender or seller in case you are taking a new home for a better deal. You can ask the seller to pay the closing fees as this is very common practice these days. In case you are the original owner, then use different techniques to crack the best deal with the lender. The underlining point is that refinancing a home involves costs and you must evaluate carefully whether refinancing is beneficial for you or not?
You Have The Upper Hand While Refinancing
While refinancing if you have good credit history with the lender, then go for a new home loan with the same lender. In that case, you can negotiate to waive closing costs or some fees etc. The lender will do this for you in order to keep his good customer.
You can go for a loan with a higher interest rate and no closing cost. This is advisable in case you plan to sell the house off in the near future.
You can even get the fees and closing costs included in the loan amount. This increases the loan’s final amount. Another disadvantage is that while refinancing it is not required that the buyer should pay all the closing costs. But this situation is suitable if you do not have cash in hand.
If you keep all these points in consideration, then bad credit debt consolidation mortgage loan can surely remove the burden of a bad credit history and you can finally gain control over your money matters.