Sub-Prime Mortgage Company - 4 Signs Of A Predatory Sub-prime Lender

If you have bad credit and are looking to get a home loan, odds are, you are going to be applying with a subprime lender. Subprime lenders specialize in financing for people with poor credit history or "less than perfect credit".

Getting a subprime mortgage loan can be good if you can get a reasonable interest rate and terms and then refinance as soon as the pre-payment penalty period is over. However, because borrowers usually have fewer mortgage options because of their bad credit, they can unknowingly get pushed into a loan that is predatory or unjustifiably more expensive than what they should be able to qualify for.

Here are some things to watch out for when dealing with a sub-prime mortgage lender:

1. Get the closing costs and all fees in writing at least 24 hours before closing - Many subprime lenders, because they know you have fewer other options, will charge outlandish fees at closing, knowing that the borrower will most likely just pay them.

2. Beware of the lender encouraging you to borrow more than you can realistically afford - This usually ends in foreclosure, which is what you want to avoid.

3. Ask about pre-payment penalties - Almost all subprime mortgage loans come with prepayment penalties, make sure you know exactly what they are in advance. Once the papers are signed its too late. It can make it so that you have to wait longer than you want to, to refinance.

4. Know what interest rate you are getting, and get it in writing first - This is one way where subprime lenders are known for gouging borrowers. Find out what comparable interest rates are for other subprime lenders and make sure that your interest rate is competitive or comparable.

About the Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans. To view our list of recommended subprime mortgage companies online, visit this page: http://www.abcloanguide.com/lessthanperfectcredit.shtml

Refinancing Your Home Mortgage Loan With Bad Credit

There are numerous reasons a person has bad credit. Late or partial payments, missing payments, and too many outstanding debts could all be factors that have left you with a poor credit rating. If you want to refinance your current mortgage but are afraid a poor credit rating will disqualify you, be aware that there are mortgage lenders that can help you qualify for a loan. Refinancing your home with bad credit is not impossible. Mortgage lenders can help you be approved for a home refinancing loan and will offer you advice on how to improve your credit rating.

Bad credit can result from many other factors besides missing or making late payments. Illness, unexpected expenses, and unemployment can affect your credit rating adversely as well. When you refinance your existing mortgage you may even be able to get cash back to help you pay off your debts and restore your credit rating. Regardless of your credit history, you can be approved for a home refinance loan. You could lower your monthly mortgage payments and have the extra cash you need to pay off high interest debts. Refinancing with bad credit is not only possible; you could be approved quickly when you apply for a refinancing loan online. Online lenders can offer you free quotes and great terms, even with bad credit.

If you have bad credit, contact a lender who specializes in sub prime refinancing loans. The application is fast and easy. You could be approved for a home refinancing loan in just hours and the low rates you'll receive will save you money each month, allowing you to pay off your debts and begin rebuilding your credit. Mortgage lenders can help you with refinancing your home even if your credit history is less than perfect. A mortgage loan is secured by your home, so the risks for the lender are much less than with a non-secured loan. Bad credit will not prevent you from refinancing your mortgage and may even put you on the path to freedom from debt entirely.

Apply to refinance your mortgage today and you could be saving money on your monthly mortgage payments in a very short time. No matter what your credit history, lenders are anxious to approve your loan today. Complete an application now to see the great interest rates and low monthly payments that are available to you.

About the Author

Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and the latest news about various types of loans.

Refinance Mortgage Lenders - Finding The Best Refinance Lender

Finding a good lender to refinance your mortgage can be almost
as important a decision as the actual mortgage you choose. In
order to make a wise selection of a refinancing lender you
should do four things:

1. Know the objective of your mortgage refinance

Do you want to lower your current interest rate? Generally,
refinancing your mortgage can be profitable if your current
mortgage is 2% higher than the prevailing rates. Do you want to
move from an adjustable rate mortgage (ARM) to a fixed rate
mortgage? If interest rates are creeping up this may be a good idea. Do
you want to shorten the term of your mortgage to accumulate
value more quickly? Do you want to take cash out of your home's
equity? The mortgage refinance lender you pick will want to know
your reason for refinancing so that the appropriate mortgage
product can be chosen. You will also want to be aware of your
credit score and the terms of your current mortgage.

2. Know the different types of mortgage refinance lenders and
the different types of mortgage refinance products that are
available

Just like when your home's mortgage was originally financed,
there are a variety of lenders who can refinance your mortgage:
Banks, credit unions, mortgage companies. There are also brokers
who will find a variety of lenders for you. You should be aware,
however, that unless specifically contracted to do so a mortgage
broker does not have to find the mortgage refinance package that
might be the best for you. Refresh your knowledge of the mortgage financing vocabulary. Be
fluent with terms such as interest rate, point and prepayment
penalties. Also, most newspapers publish a daily listing of
current interest rates for different types of mortgages. Become
familiar with these listings and check them on a daily basis.

3. Shop around and find several different lenders to refinance
your mortgage

The market for refinancing mortgages has become so crowded and
competitive that it is fairly easy to find several lenders to
compare. You might use a broker. The newspaper and the yellow
pages are also good places to start. If you are comfortable
negotiating the Internet, it is an excellent resource. There are
many services online which will perform a preliminary search for
a lender. Your current mortgage lender should also be included
in this group.

4. Negotiate the mortgage refinance loan that suits your needs

Many times the compensation a lender makes on refinancing a
mortgage is dependent on the terms of the mortgage so it is up
to you to make sure that the loan received is the most
advantageous for you. You might want to investigate mortgage refinance lenders who
offer no closing cost loans or free appraisals. It is important
to make sure that you are comparing like products. In order to
do this, have your lender present proposals in writing and
require ample time to compare the different offers.


Prepare a list of the features of each loan. The type of loan,
interest rate, points, prepayment penalties, closing costs are a
few of the loan elements which should be compared. Check the
rate you are being offered against the rates from the most
current newspaper listings. The more organized, thorough and
knowledgeable you are, the better your decision will be.

Deciding to refinance your mortgage is an important choice that
should not be made lightly. Know why you are doing it. Know the
possibilities for refinancing lenders and products that are
available. Be willing to shop amongst the different lenders and
to negotiate a beneficial deal. If you follow these steps,
finding a good mortgage refinance lender will be much easier.

About the author:

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.

Home Mortgage Refinancing - Should I Refinance?

Why should I refinance and when does it pay to do so?

Refinancing can be worthwhile, but it does not make good financial sense for everyone. A general role of thumb is that refinancing becomes worth your while if the current interest rate on your mortgage is at least 2 percentage points higher than the prevailing market rate.

There are several reasons to refinance your home:

1. To lower the interest rate on your mortgage, reducing your monthly payments and overall cost;

2. To reduce the term or length of your loan, doing so can save you thousands of dollars in interest;

3. To provide a means of consolidating your debt;

4. To draw on the equity built up in the house to get cash for a major purchase or for children's education;

5. Have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan.

It is better to refinance if you can get an interest rate at least two percentage points lower than what you are currently paying. However, every situation is different. Some lenders are offering reduced fees or no points. Asking yourself a few questions may help you determine if you can save money:

1. How much can I lower my current monthly payment?
2. How much will I pay in refinancing costs?
3. How much will I still owe on the house?
4. How much am I currently paying each month?
5. How much did I initially pay for the house?

There are other considerations, too, such as how long you plan to stay in the house. Most sources say that it takes at least three years to realize fully the savings from a lower interest rate, given the costs of the refinancing. Itemize all the expenses of the refinance and estimate your new monthly payments. Answering these questions can help you to decide if you should refinance.

Talk with mortgage lenders, real estate agents, attorneys, and other advisors about lending practices, mortgage instruments, and your own interests before you commit to any specific loan.

About the Author

Chileshe Mwape writes for the Mortgage Lenders website at http://banks.lending-guide.org/ and he's also a regular contributor to the Auto Loans website at http://www.motor-car-loans.org.uk/

Guide To Refinancing Your Mortgage

Refinancing your mortgage can mean great savings for you and your family. Replacing your existing mortgage with a lower interest loan, changing the term of your loan, or even consolidating all your debts into this new loan could save you money, both monthly and over the life of the loan.

The rule of thumb is when interest rates are 1.5 to 2% lower than you are currently paying on your mortgage, it's time to consider refinancing.

Would Refinancing Be Worth It?

Refinancing can be worthwhile, but it does not make financial sense for everyone. There are a number of items to consider, such as how long you plan to stay in the house. Most sources say that it takes at least 3 years to fully realize the savings from a lower interest rate, given the costs of the refinancing.

Refinancing can be a good idea for homeowners who:

* Have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan.
* Want to build up equity more quickly by converting to a loan with a shorter term.
* Want to draw on the equity built up in their house to get cash for a major purchase or for their children's education.

What Are the Costs of Refinancing?

Costs can vary significantly from area to area and from lender to lender, so the following are estimates only. Your actual closing costs may be higher or lower than the ranges indicated below.

Application Fee $75 - $300. This charge imposed by your lender covers the initial costs of processing your loan request and checking your credit report.

Appraisal Fee $150 - $400. This fee pays for an appraisal, which is a defensible estimate of the value of the property.

Survey Costs $125 - $300.

Homeowner's Hazard Insurance $300 - $600.

Lender's Attorney's Review Fees $75 - $200. The lender will usually charge you for fees paid to the lawyer or company that conducts the closing for the lender.

Title Search and Title Insurance $450 - $600. This charge will cover the cost of examining the public record to confirm ownership of the real estate, and the cost of an insurance policy.

Home Inspection Fees $175 - $350.

Loan Origination Fees 1% of loan. The origination fee is charged for the lender's work in evaluating and preparing your mortgage loan.

Mortgage Insurance 0.5% - 1.0%. Depending on the type of loan you have and other factors, another major expense you might face is the fee for private mortgage insurance.

Points 1% - 3%. Points are prepaid finance charges imposed by the lender at closing to increase the lender's yield beyond the stated interest rate on the mortgage note. One point equals 1% of the loan amount.

Prepayment Penalty. A prepayment penalty on your present mortgage could be the greatest deterrent to refinancing. The mortgage documents for your existing loan will state if there is such a penalty. In some loans, you may be charged interest for the full month in which you prepay your loan. In the future, always make sure there is NO prepayment penalty.

In Conclusion

A homeowner should plan on paying an average of 3 - 6 % of the outstanding principal in refinancing costs, plus any prepayment penalties and the costs of paying off any second mortgages that may exist.

Whether or not that is a wise decision is purely a numbers matter.

About the Author
Visit Refinance Mortgage to learn more. Ron King is a full-time researcher, writer, and web developer. Copyright 2005 Ron King.