Eliminating Your Subprime Mortgage [mortgageprotectiontips.blogspot.com]
www.howdini.com How to deal with subprime mortgage loans What to do if you have a subprime mortgage you can't handle? Default, walk away, sell at a loss? Here's everything you need to know from author and Fox Financial Correspondent, Gerri Willis. Keywords: subprime loans subprime mortgages...
mortgageprotectiontips.blogspot.com How to deal with subprime mortgage loans
One out of every three home loans in the United States is now funded by ... Wells Fargo scaled back its subprime lending in 2004, well before the housing crash. Insight: Wells Fargo's mushrooming mortgage risk
A subprime mortgage seemed like a good idea for many aspiring homeowners just a few short years ago. It was the most touted real estate loan by most lenders. Unfortunately, after taking out the loans, many borrowers realized just a bit too late, that they were not able to meet their loan's requirements. Thankfully, there are ways to get out of the predicament now.
Subprime Mortgages - What Are They?
To give you a brief background, subprime mortgages are usually offered to people with a poor or bad credit history. Since low credit scores did not prevent folks from getting approved, these mortgages were often the last resort. Of course, the terms often included high interest rate, loan application fees as well as balloon payments and prepayment penalties.
Refinancing A Mortgage
Here are five quick steps to help you refinance your subprime mortgage.
Step 1: Timing is important when refinancing a mortgage.
It is vital that you take action when the timing is just right, especially if your existing mortgage comes with an adjustable interest rate.
Just before the interest rate adjusts to a higher rate, Before your pre-payment penalty is activated and Before the required balloon payment is called. If you don't have those key pieces of information about your mortgage, you can always contact your lender and ask for it.
Step 2: Re-evaluate and assess your credit rating.
Have you made any improvements to your credit score since it was last reviewed? There are several things you can work on right now, to repair your credit.
You are entitled to one free annual credit report from each of the three major credit bureaus, Equifax, Experian, and TransUnion, so take advantage of that opportunity.
Step 3: Have a steady source of income.
Creditors always want to be reassured that their borrowers have a steady sources of income. That steady job ensures that you will always have enough money to at least cover the interest payments of the loan.
To qualify for a second mortgage or eliminate your existing loan, you must prove that you have a stable job and steady paycheck. If your income is strictly cash, provide documentation certifying that your cash income is constant and steady.
Step 4: Evaluate the equity in your home.
How much home equity do you have left? If the equity is 10% or less of the value of the property, chances are you might not be eligible for the best refinancing rates at the moment. Start reducing the size of your existing mortgage before applying for a second mortgage.
Step 5: Shop, Compare, and Apply
Once you have lined up all the details and are ready, the only thing left to do is shop for best mortgage rates, make comparisons, and submit your application.
Question by fullofsugaw: what company did you go withh for your subprime mortgage loan? what requirements did you haveto meet? im just wanting to know names i am trying to get a mortgage but my credit is fair to poor Best answer for what company did you go withh for your subprime mortgage loan? what requirements did you haveto meet?:
Answer by psychopiet
You are out of luck. There are no sub-prime lenders anymore. Work on your credit rating and try saving more money before applying. Saving before buying sounds old-fashioned but is very much a fashion again.
Answer by Rush is a band
Most of the companies doing sub-prime are long gone. Many went out of business and the few stronger ones were bought by banks during the boom (Golden West or CountryWide for example). In case you haven't seen the news or a newspaper in 2 years, the whole economic debacle that the nation is now facing started (yes, started, it has certainly spread) with subprimes loans defaulting. Because so many defaulted, they generally aren't available anymore or you will pay a HUGE interest rate penalty to get one. good luck!
Answer by infinite crisis 247
almost nobody does sub prime loans anymore...and if they do the requirements will probably squeeze you out of contention. you would be better off working on improving your credit and saving a down payment.
Answer by Lauren F
Use any savings you have to pay off debt and clean up your credit. No one is writing subprime loans anymore for any amount that could be considered affordable. If you overpay on an interest rate, you are overpaying that for 30 years. If you clean up your credit and save up a decent downpayment, that is savings you can enjoy for 30 years.
