Whenever you are looking refinance a second mortgage, there are some criteria that you have to meet to qualify for. One of the most important criteria is that you have to have a good credit score for the lender to have faith that once the mortgage is processed you can pay back the monthly premiums in a timely manner. Generally, the credit score should be more than 680 to instil confidence in the lendor. However, if your credit score is below 680, it might be difficult for you to refinance your second mortgage on your home. Not to worry though, there are other ways where you can refinance your second mortgage with ease. Read on for more details or call us today to speak to a member of our team.
What is refinancing?
Before going into an in-depth explanation of how to refinance your second mortgage with bad credit, let’s talk a bit about refinancing. Refinancing, basically means, you are taking another loan which will pay off an existing loan completely. By doing so you can gain some benefits from refinancing, such as; lower interest rate than your existing mortgage rate, lower your monthly payments, take out more money if you need to, and you can also shorten your mortgage term.
Now, coming to refinancing your second mortgage with bad credit; you may have to meet some requirements, which are:
- The equity amount in your home needs to be 20% or more.
- Borrow up to a maximum of 80% of your homes value.
- Have a credit rating of at least 580 (credit score).
If you are refinancing on bad credit, you may not get the best terms and conditions right off the bat, but you will be in a better position financially than you are in now.
If you have any queries, feel free to call us.