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Subprime Mortgage Lenders - Helpful Tips When Getting a Subprime Mortgage Loan
If you have bad credit history, no down payment or difficult to prove income and are looking to get approved for a home mortgage loan, you will probably need to look at subprime mortgage lenders to help you. To see a list of our recommended subprime mortgage lenders you can click on the link below.
There are a few things to know about subprime mortgages lenders. They specialize in providing mortgage loans for people with less than ideal situations, whether it be difficult to prove income, low or poor credit scores (most often the case with subprime mortgages), or no down payment (this factor alone will not necessarily put you in the subprime loan category).
The interest rate on a subprime mortgage loans will be higher than any other type of mortgage loan where credit, income and down payment are all optimal. However, with subprime mortgage loans, as a borrower, you need to be careful about a few things when dealing with subprime mortgage lenders.
The interest rate with subprime mortgages can vary greatly. There are some subprime mortgage lenders that, for the same set of qualifications, can offer an interest rate of say, 7%, which is a little above average, and then there will be others who will quote 9-12% or more. Now, if this is all for the same qualifications, you could be talking about hundreds of dollars a month extra in payments just because you are not getting a fair interest rate for your qualification. This is where the borrower needs to be careful. Make sure you are getting the best interest rate possible with your subprime lender. Some subprime lenders take advantage of borrowers with bad credit or hard to approve situations, and they charge much more in interest than what is fair for to the borrower.
Another way subprime mortgage lenders can take advantage of unsuspecting borrowers is by the lender having a pre-payment penalty on the loan that is unreasonable and not fair to the borrower, based on their qualifications. A typical subprime mortgage loan will have a 6 month to a 2 year pre-payment penalty. However, sometimes a subprime lender will offer a loan with a 3 year or higher pre-payment penalty. That is too high, I think a 2 year pre-payment penalty is high, but any higher than that, and you should probably keep looking for a new lender.
Other than a couple of things to be careful of when dealing with subprime lenders, getting approved, even with a slightly higher interest rate, can be a really great thing for you to buy the home you want.
To see our list of recommended subprime mortgage lenders, visit this page: Recommended Subprime Mortgage Lenders
Carrie Reeder is the owner of ABC Loan Guide. It is an informational website about various types of loans. The site has informative loan articles and the latest finance news.
MORE RESOURCES updated Wed. September / 23 / 2020
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A record number of borrowers can now save on a mortgage refinance, as rates set another historic low CNBC
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Mortgage lenders are adding the refinancing fee. You can still avoid it if you act now. Bankrate.com
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Mortgage and refinance rates today, September 15, 2020 | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
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Seven Out of 10 Homeowners Who Research Refinancing Get Unwanted Sales Pitches: Survey - Credible News
Seven Out of 10 Homeowners Who Research Refinancing Get Unwanted Sales Pitches: Survey Credible News
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Pontiac's United Wholesale Mortgage to go public with Gores Group The Detroit News
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Colliers Mortgage Closes Fannie Mae Loan for Acquisition Financing of 129-Unit The 10Forty8 Modern Living Community in Seguin, Texas - MultifamilyBiz.com
Colliers Mortgage Closes Fannie Mae Loan for Acquisition Financing of 129-Unit The 10Forty8 Modern Living Community in Seguin, Texas MultifamilyBiz.com
Fannie's Forecast Sees a Brightening Recovery Mortgage News Daily
Compare Today's Mortgage Refinance Rates: Sep 22 Credible News
Why Warren Buffett would say to refinance your mortgage now Wall Street Reporter
How to get a low-cost mortgage refinance Bankrate.com
Mortgage refinancing is about to get more expensive Pittsburgh Post-Gazette
How does mortgage refinancing work? Bankrate.com
Refinancing Your Mortgage? Those Rock-Bottom Interest Rates Aren’t for You - The Wall Street Journal
Refinancing Your Mortgage? Those Rock-Bottom Interest Rates Aren’t for You The Wall Street Journal
10 ways to save money on a tight budget Bankrate.com
Should you refinance your mortgage? Tennessean
Mortgage refinance applications spike 79% as homeowners rush to take advantage of lower rates - CNBC
2021 Mortgage rate forecast predicts a rise to 3.3% by 4Q 2021 National Mortgage News
I refinanced my mortgage during COVID-19, and thanks to low interest rates I'll save about $50000 - Business Insider
I refinanced my mortgage during COVID-19, and thanks to low interest rates I'll save about $50000 Business Insider
Rushing to Refinance Your Mortgage: 6 Tips and What to Avoid The New York Times
What Is a Mortgage? Everything to Know About Home Loans Credible News