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Home Loan Refinancing Executive Offers Tips to Avoid Getting Ripped Off, Even with Low Credit Scores
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Added: 07/24/2006
Type: Summary
Viewed: 180 time(s)
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Home Loan Refinancing Executive Offers Tips to Avoid Getting Ripped Off, Even with Low Credit Score
The last several years have seen interest rates hit all time lows and real estate values steadily soar. Consequently, the home loan refinancing market has seen plenty of action. Even though mortgage rates have started to rise again, low mortgage rates are still the motivating force that drives most homeowners with good credit to refinance their home loan.
But for people living beyond their means, unable to manage their debt, and facing deteriorating credit scores, possible bankruptcy, or even worse, foreclosure, the purpose and strategy behind home loan refinancing is entirely different.
In an interview on a major network television station in Los Angeles, Miles Masters, Executive Vice President of Advantix Lending in Irvine, California, offered some helpful tips on refinancing a home loan with less-than-perfect credit.
"The first thing homeowners with poor credit need to understand is the interest rate on a refinanced home loan is not all they need to focus on. Consolidating debt, lowering your monthly payments to a manageable level, and improving your credit should also be objectives," said Masters. "Shop around for a loan and get at least three quotes. You will have a better idea of where you stand financially when you know exactly what your credit score is and the value your home will afford you."
Masters also suggests looking out for mortgage brokers who want to charge up-front or excessive fees for a refinanced home loan. "This is a clear indication that you’re about to get ripped off. If you have already started the home loan refinancing process and are not comfortable with the loan terms or the fees, stop the transaction. Don’t be pressured into a loan that will cost you more than you really need to pay."
Finally, Masters suggests shopping around for a no closing costs home loan; this can save thousands of dollars.
Once a home loan refinancing plan has been chosen, Miles Masters suggests taking the following steps:
* stick to the plan
* make all payments on time
* avoid unnecessary credit card debt
By following these steps, credit scores should improve within two years. "At that time, you should be able to refinance your home loan at a much better fixed rate," said Masters.
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