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ARM Refi - The Bills.com Blog
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ARM Refi
Question: I have an ARM that is coming due this July. I would like an ARM refi - but I have bad credit. Can I still refinance with a low rate and have a cash out?
Answer: While you may be able to obtain a refinance loan with cash out, your low credit score will make finding a loan with a low interest rate much less likely.
But, ifyou want an introduction to pre-screened mortgage lenders, Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at:
https://www.bills.com/mortage/refinance/
If you are interested, the reason that lenders consider a potential borrower’s credit score when making lending decisions is to determine the likelihood that the borrower will default on the loan. Your credit score is a
numerical representation of the statistical likelihood that you will default on any new loan extended to you. This analysis is based on innumerable studies of common characteristics shared by non-paying debtors. Lenders who extend credit to borrowers with lower credit scores charge higher interest rates to compensate for the risk associated with lending to consumers with credit problems. So, while you may be able to refinance your home, you should expect to pay a premium in interest due to your poor credit.
To learn
more about refinance loans, I encourage you to visit the Bills.com Home Refinance Resources page at http://www.bills.com/home-refinance/
If you enter your contact information in the Bills.com Savings Center at the top of the page, we can have several pre-screened lenders contact you to discuss the refinance options available to you. I hope that this information helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
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