Bad Credit Home Loans Mortgage Refinance Interest Only
When looking for bad credit home loans mortgage refinance interest only, be careful.
That is, if you want to keep your "home sweet home."
Why do I say that? Because the number of refinance mortgages going into default and foreclosure is skyrocketing all across the U.S.
And most homeowners getting into trouble are those with bad credit, people who were enticed into exotic home equity loans with adjustable rate mortgages, interest only payments and 125% loan-to-value financing.
The Federal Reserve board has even issued a warning "Borrowers beware!"
Did you know, once upon a time, just one generation ago, lenders were very conservative? Are you aware they never loaned money to people with bad credit? Believe it or not, it's true.
But that's all changed. Over the past ten years, the number of refinance loans to homeowners with bad credit has increased by a shocking 400%.
Lending to families with low credit scores is now a $240 billion dollar industry.
Since the mid 90s, the home mortgage industry has become increasingly competitive and sophisticated. Now many unscrupulous and often just plain fraudulent lenders are aggressively preying on people once considered bad credit risks.
Im sure youve seen the ads. They're on TV, radio, you get them in the mail and you see them on the internet. Low introductory interest rates. Low monthly interest only payments. 125% loans. No fees. No appraisal. No credit check. Bad credit no problem. Fast approval.
Some lenders promise anything and everything, just to get their hands on your money and your home.
But don't kid yourself. Nobody gets something for nothing, especially people with poor credit. Bankers are not in the charity business. They're in the business of making as much money as they can and borrowers with low income or damaged credit always pay a lot more in interest and fees. Thats just the way it is!
Some of the sleaziest lenders are actually charging vulnerable borrowers as much as 20 to 30% in interest and closing costs up to $5,000 on $25,000 loans.
If youre overburdened with unsecured credit card debt, bad credit home loans mortgage refinance interest only payments may be worth the risk. You can lower your monthly payments, reduce your taxable income and put some extra cash in your pocket.
And you can even do it with bad credit or a bankruptcy if youve accumulated enough equity in your home.
But there are considerable risks involved when you put your home up as collateral. You could end up losing everything, including the roof over your head, especially if you max out your credit cards all over again. So dont bite off more than you can chew.
Be smart, be careful and beware of exotic mortgage refinance loans.
Do your homework. Know exactly what the terms and costs are. Always compare loan packages from different sources.
And don't let anyone pressure you into doing something you might be sorry for later on.
