| Home | Free Articles for Your Site | Submit an Article | Advertise | Link to Us | Search | Contact Us |
This site is an archive of old articles

    SEARCH ARTICLES
    Custom Search


vertical line

Article Surfing Archive



Bad Credit Mortgage * Sometimes Bad Credit History Can Be Rewarded* - Articles Surfing

When you have bad credit you wonder what lenders will offer you for a mortgage deal on your home. The big obstacle, as you know, was your bad credit history. To add to the all the fears, there were a few pals of yours who held that the deals offered to you will not be as good as regular mortgages.

However, before you decide not to mortgage because of bad credit history, let me say, mortgage lenders generally do not give much importance to bad credit history. Through this article, we will inform borrowers of bad credit mortgages which are basically mortgages for the people with bad credit history and the options for bad credit.

Ok! Why is it that mortgage loan providers ignore bad credit history while offering bad credit mortgage? Is it because they don*t fear for payment? Well, fact of the matter is that most borrowers with bad credit history do pose a higher risk on the loan. Will the borrower default this time? Who really knows!

Therefore, how will loan providers agree to lend to borrowers with bad credit history is really hard to say. Making the decision to lend bad credit mortgage is mostly influenced by the credit score of borrowers. Your credit score is demonstrated by taking into account the borrowers* credit file. FICO score, which is generally accepted by the major credit agencies, and mortgage lenders too.

Borrowers with a credit score of 710 and above will have most mortgage lenders running after them to take mortgage loans. Borrowers that have a credit score in the range of 620-700 can also get good deals on mortgages. But most borrowers who earn a score of 500 and below are the ones who form the customers of bad credit mortgage.

Through the process of bad credit mortgage, the borrower will make purchase or construct a home. If this is a first home purchase, most borrowers can are eligible for the some discounts available to an individual who is taking on a first time mortgage.

However the amounts available under bad credit mortgage will not be as much as the good credit mortgages. In most cases the lender may ask for a larger deposit. While the deposit on regular mortgages ranges up to 27%, the percentage of deposits under bad credit mortgage will be higher. Deposits will shows that the borrower is committed towards the mortgage. If borrower fails to repay the mortgage, he or she will lose their deposit.

Interest rates on bad credit mortgages is largely disputable. Many lenders allege that their act of approving the borrower a mortgage was a favor; the borrowers wouldn*t have been able to mortgage their house had they not associated with them. Borrowers who have been refused mortgage loans or other credit lines a few times will easily accept the statement. Borrowers like this will often fall prey to the lenders who charge huge sums of interest and fees on the bad credit mortgage.

However, determining a reasonable interest rate is not as hard as you think. Keep in mind that your will be higher than that of someone with good credit. One can easily estimate the interest rate by making a comparison of interest rates charged by principal lending banks and other financial institutions. Mortgage calculator has a record of the interest rates for several categories of mortgages. When looking into the bad credit mortgage category, you know of the least rates prevalent for the category. You can also confirm that the interest rates found are correct through a mortgage quote from another lender. Mortgage quote is an offer by a lender to the borrower to accept bad credit mortgage with some stated terms attached.

Another important use of mortgage quotes is to help borrowers in choosing a particular lender that will fit their needs. If the terms are alright with the borrower, and he finds that the terms offered a particular lender are the best of all lenders, he can choose to accept the bad credit mortgage offered by that lender.

Bad credit mortgages give borrowers a great second chance to improve their credit history. Also paying off the repayments on bad credit mortgage will give them a positive mark on their credit file. But if they choose to follow the same approach as in the past defaulted debts, they will continue using the bad credit mortgages for years to come.

www.centurymortgages.org

Submitted by:

Troy Francis

Copyright Troy Francis. Troy is a writer and real estate broker for Century Mortgages. Please feel free to republish this article. We only ask that you leave the link active. You many see more articles like this by going to: http://www.CenturyMortgages.org.



        RELATED SITES






https://articlesurfing.org/business_and_finance/bad_credit_mortgage___sometimes_bad_credit_history_can_be_rewarded_.html

Copyright © 1995 - Photius Coutsoukis (All Rights Reserved).










ARTICLE CATEGORIES

Aging
Arts and Crafts
Auto and Trucks
Automotive
Business
Business and Finance
Cancer Survival
Career
Classifieds
Computers and Internet
Computers and Technology
Cooking
Culture
Education
Education #2
Entertainment
Etiquette
Family
Finances
Food and Drink
Food and Drink B
Gadgets and Gizmos
Gardening
Health
Hobbies
Home Improvement
Home Management
Humor
Internet
Jobs
Kids and Teens
Learning Languages
Leadership
Legal
Legal B
Marketing
Marketing B
Medical Business
Medicines and Remedies
Music and Movies
Online Business
Opinions
Parenting
Parenting B
Pets
Pets and Animals
Poetry
Politics
Politics and Government
Real Estate
Recreation
Recreation and Sports
Science
Self Help
Self Improvement
Short Stories
Site Promotion
Society
Sports
Travel and Leisure
Travel Part B
Web Development
Wellness, Fitness and Diet
World Affairs
Writing
Writing B