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bad credit equity home loan low mortgage pre qualify rate
Bad Credit History? How Financing And Buying A Home Can Help You Improve Your Financial Situation
Financing and buying a home can help improve your financial situations, especially if you have a bad credit history. Adding a mortgage payment to your monthly expenses seems like a mistake if you are having financial difficulties, but in the long run a mortgage can save you money on your living expenses.
Raise Your Credit Score
Regular payments made on a loan-term loan, such as a mortgage, are weighted more heavily by financial institutions that regular credit card payments. Within three years of regular payments, you can raise your poor credit rating to good and qualify for lower interest rates on all your loans.
So while you will probably have to finance your mortgage with a sub prime lender if you have poor credit, you can expect to refinance your loan for better rates in about three years.
Investment For The Future
Paying rent is simply making someone else richer. For the same amount you are paying on rent, you can be making a house payment and investing in your future. You will be building equity through your monthly payments and rising real estate prices.
Your homes equity is a financial safety net that you can tap into for future emergencies. With its interest written off on your taxes, this line of credit is better than using a credit card. You can also use the equity as part of a retirement plan by down-sizing your home in the future.
Reduce Future Living Expenses
Unlike rent, your mortgage payment wont fluctuate, unless you opt for an
adjustable rate mortgage. So while your paycheck will increase with each pay raise, your mortgage payment will be taking a smaller chunk of your paycheck. And once your mortgage is paid off, then you will really see a reduction in your living expenses.
Create Wealth
If you are really ambitious, you can also create wealth through purchasing and renovating a house. Often times a little bit of sweat-equity can have big payoffs. You can then sell the house and purchase another house to renovate. This hard-work process is best for those willing to put a lot of time and effort into a project.
About the Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans. To view our list of recommended bad credit mortgage lenders online, visit this
page: http://www.abcloanguide.com/lessthanperfectcredit.shtml
More Useful Resource and Updates on bad credit equity home loan low mortgage pre qualify rate
- Banks cut down interest rates on home loan (Central Chronicle)
The public sector banks have announced to cut down the interest rate on major loans by 50 to 75 basis points (0.50-0.75%). The banks announced it after concluding the meeting of the heads of the banks with Union Finance Minister P Chidambaram, who assured the bank chiefs to take some measurable steps to help banks in reducing bad loans on their books.
- Agency offers mortgage assistance to homeowners in trouble (The Palm Beach Post)
After more than a year of piecemeal mortgage-relief initiatives, Washington and the mortgage industry Tuesday announced the most sweeping effort to date to get at the heart of the credit crisis - falling U.S. home prices and record foreclosures.
- Mortgage Bonds Fall to New Lows as Paulson Scraps U.S. Buying (Bloomberg)
Nov. 12 (Bloomberg) -- Residential and commercial-mortgage backed bonds tumbled after Treasury Secretary Henry Paulson said the government no longer plans to buy devalued mortgage assets, credit-default swap indexes suggest.
- New plan for home loan help on way (San Diego Union-Tribune)
WASHINGTON ? As losses from bad home loans continue to mount despite more than a year of government and industry focus, some of the giants of the mortgage industry, including Fannie Mae and Freddie Mac, yesterday unveiled another stepped-up effort to keep delinquent borrowers out of foreclosure.
- Mortgage Situation 'Requires Legislation,' Frank Says (CQPolitics.com via Yahoo! News)
House Financial Services Chairman Barney Frank said Wednesday that Congress should take up legislation to make it easier to renegotiate troubled mortgages, citing what he called a lack of cooperation from mortgage servicers.
- Officials switch bailout focus (Fargo Forum)
Troubled assets won't be bought Urgently shifting course, the Bush administration is abandoning the centerpiece of its massive $700 billion economic rescue plan and exploring new ways to shore up not only banks but credit-card, auto-loan and other huge non-bank businesses. Advertisement: ADVANTAGE REALTORS Get the Anhorn Advantage! Looking to buy a new home or sell your current ...
- Seven Common Credit Myths Dispelled (Carteret County News-Times)
(ARA) - With the economy reeling and home loan rates at a nine-month high, lenders are scrutinizing everyone's credit history like never before. Yet, many Americans don't realize the impact of late payments on their credit score and their finances.
- Government shifts focus of bailout (Baltimore Sun)
Less of $700 billion will buy securities based on bad mortgages Urgently shifting course, the Bush administration is abandoning the centerpiece of its $700 billion economic rescue plan and exploring new ways to shore up not only banks but credit card, auto loan and other huge nonbank businesses.
- Don't use credit card to pay down mortgage (The Post-Standard)
Q. I have a mortgage of $213,000 on a home valued at $276,000. My credit score is 713. I'm wondering if I would be better off to max out all my credit cards - the combined limit total is approximately $70,000 - and pay down my mortgage? Can you advise?
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