Poor Credit Refinance

Posted by admin on November 3rd, 2009 at 12:00am

Question:
Is it possible to someone to refinance with cash immediately if he has poor credit refinance?
I have sufficient income now but I still have poor credit and I wish to refinance my mortgage with cash out. Am I able to do this?

Answers:
I highly doubt it. My husband and I just did that a couple of months ago and our loan officer informed us that they were not even going to look at anybody with scores under 730.

It depends on what you mean by poor credit refinance.
A lot of individuals believe they have really bad credit when it’s not actually that poor. There are still companies out there lending to damaged credit scores though. You need to realize you will pay a very high interest rate, possibly higher than you have right now even though rates are lower.
Another alternative is to go by a poor credit refinance repair company. You will pay a lot for their services as well, and it will only repair your credit for a very short time period (essentially what they do is argue everything in your credit report). It all gets cleared off because companies do not respond within the time period, then you can obtain your loan real fast, but then it will all return back on. A guarantee will never be given and it will not repair your credit permanently.
The best idea for you is to stick with what you have at the moment. As a matter of fact, chances are your house’s value has deteriorated, and probably decreased to the point that getting cash out will not be an alternative anymore. There is not anyone lending up to 100% right now. Many are likely to not even go above 85%. And many lenders will not even consider looking at an appraisal that was performed before and will most likely request a new one. (We will not take appraisals from 2008 even at this moment).

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