Giving 100's of FREE Professional Consultations every day since 1999

Start Consultation
Privacy & Security Protected

Refinance a Home Mortgage with Bad Credit

Are you struggling to make mortgage payments every month? Then, like many homeowners, you, too, may find a mortgage refinance with bad credit to be very helpful. The refinancing process involves paying off your existing mortgage with a new loan. Usually, the new loan will have a lower monthly payment than the original loan either because of a lower interest rate or longer repayment term.

Refinancing Your Mortgage with Real-Estate-Yogi

A bad credit home loan refinance can prove to be rather beneficial for you. From reducing the current interest rate to obtaining payments that fit into your budget, the reasons you may want to consider refinancing your existing mortgage come in various forms. Luckily for those who are seeking a mortgage refinance and improved credit score, we at Real-Estate-Yogi have many lenders in our network who specialize in servicing borrowers for refinancing. While it depends from lender to lender, you can obtain many lucrative possibilities:

  • Have the ability to refinance in order to obtain your equity in cash
  • Choose fixed and variable rates
  • Refinance up to 135 percent of the home’s appraised value
  • Extend your repayment term
  • No hidden fees
  • Many lenders will overlook your credit history
  • Installments lower than your current mortgage payments
  • No down payment required
  • Lower interest rate

Good Reasons to Refinance Your Mortgage with Bad Credit

There are many good reasons a person might want to opt for a bad credit mortgage refinance.

  • Increase the term of the loan according to your needs
  • Withdraw from your participation in an adjustable-rate mortgage if interest rates have increased
  • Lowering the monthly mortgage payment
  • Refinance to consolidate debt, spending less on other debt

Qualifying for a Home Refinance Loan

Now, before considering applying for a bad credit home refinance, you should ensure you are financially able to make the payments. This means you are sure you have sufficient income income ratio is aligned with the lender’s guidelines. If you fail to meet these qualifications, you will be wasting both your time and the lender’s. In some cases, you could still be approved for a home refinance with bad credit even after falling outside the normal lending guidelines; however, the interest rate will likely be extremely high. Lenders consider the following five factors during the application process of bad credit refinance home loans as well as with a refinance application from those with good credit.

  • Borrowers must have sufficient income to make the mortgage payments. Lenders will also want to know whether the income is stable
  • As your credit score is a mitigating factor, lenders can use this information to determine how likely you are to make timely mortgage payments
  • The debt to income ratio will help determine whether there is enough cash left for mortgage payments after paying off other liabilities
  • The lender will also want to know whether you have enough for a down payment and cash to pay your mortgage payment in case your income is reduced
  • Your debt to income ratio

How a Refinance Loan with Real-Estate-Yogi Help?

At Real-Estate-Yogi, we understand one of the primary reasons to seek a bad credit refinance mortgage is to prevent increases in your monthly mortgage payments. By refinancing, you can usually lock in a lower fixed rate, and ultimately lower your monthly payments. You can also use it to reduce the monthly payments on other debts.

Get Expert Advice When Buying a Home!

Real Estate Yogi has a network of over 160,000 professional real estate and mortgage lending experts. We can connect you to an experienced real estate agent and mortgage lender in your area, who will give you a free consultation on buying a home. Call 1-800-987-1397 now to get connected to a mortgage lending broker who can find the best mortgage rates available.
Find the Best Mortagage expert