Should I refinance my home loan to fix my bad credit?
In my previous post, I wrote about the importance of asking for help before your credit situation gets out of control. It can be tough to reach out and ask for help. Sometimes it happens all too late, ending with a bad credit rating and a seemingly tough road ahead.
While it's true that people with a bad credit can find it more difficult to secure finance, these days there are more specialist lending companies out there offering loan products specifically for people with a less than ideal credit history. Depending on how bad things really are, an experienced mortgage broker with access to specialist lending products can advise you on how best to seek to repair your credit rating and regain control of your finances.
And although it might sting a little to be told that you're not a 'good risk' by the traditional lenders, a specialist lending home loan can be a solution that helps get you across the line for the finance you need for the home you want to buy, or bring together the debts you already have so you can start to clear up your credit file.
It's important to remember that specialist lender home loans often have higher interest rates than regular home loans. But if you are finding that other lenders are not keen to approve your loan applications based on your poor credit rating, then your choices are somewhat narrowed.
You may need to make do with the higher interest loans available to you now in the short-term, paying your dues and then later, after you have been diligently paying off the loan for a while, you may be able to refinance to a traditional home loan with a lower interest rate.
So there you have it, 7 posts about some of the more common reasons why homeowners refinance their loans. Did I miss any? Tell me why you might be considering refinancing your home loan and I'll let you know how I can help.
If you'd like help with assessing your personal and financial situation, as well as comparing the loans in the market to see if you're truly getting the right deal for you, then call Bob Malpass now on 0431 862 136, email [email protected] or send us a message via our website for a quick response.
Thanks for reading,