Bad credit home loans are causing many homeowners a great amount of stress in the United States. It is quite interesting that the state that searches bad credit home loans the most is Arkansas. Arkansas searching this keyword phrase the most likely means that many homeowners in Arkansas will look to get a lower interest-rate on their mortgage.
If you currently have bad credit you are going to find it difficult to get the low advertised mortgage interest rates you are seeing on television and the Internet. You have probably noticed that there are many advertisements for mortgage rates around 5%. If you have a credit score below 650 and little equity in your home you are going to find it very difficult to get mortgage rates this low.
This does not mean that you will not benefit from refinancing today. If you can save one full percentage point on your mortgage refinance then it would be worth it for you to go through this process. If you signed your first mortgage when conventional mortgage rates were about 6% there’s a good opportunity that you will save by refinancing today.
Conventional mortgage rates are currently at 5% which means that you are likely to lock into a lower interest rate then you initially did. The only way you will know what mortgage interest rate you qualify for is to go through the refinance application process. After you complete this process you will better know what amount of savings you will see by refinancing.
If you decide that refinancing is right for you it is important to note that you’ll have to pay closing costs. These closing costs can often outweigh the benefits of refinancing so be sure to calculate that into your savings. This is the reason that you will want to save at least one full percentage point.
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Monday, March 15, 2010
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