Texas Lending Hub

Since 1990, Texas has seen mortgage rates decrease, allowing homeowners to refinance their homes for lower monthly payments. Even with bad credit or a bankruptcy on file, people are able to reduce their rates, save on their monthly payment, or cash out their equity at a low rate. With poor credit, it’s important that you are a savvy shopper and use a reputable lender. Texas has more than 24,000 licensed loan officers and brokers, so you have many choices.

Refinance Options With Bad Credit
With today’s lending practices, you can have the same available loan terms as someone with prime status. The only difference is that you can expect to pay a couple of points higher than the prime rate. This means you can qualify for a cash out refi or a simple refi to lower your original loan’s rates. Before you start looking for a loan, decide what terms are in your best interest. How soon do you want to pay off your loan? What would be your ideal monthly payment? Do you need to access your equity in the near future?

Improving Your Credit Status
Even with a few late payments or a bankruptcy, you can earn prime credit standing. Time is your best ally. In two years time, most credit problems stop affecting your credit. Increasing your cash reserves, such as savings and money market accounts, can also improve your refi application. But remember that your home is your biggest asset, especially if it has more than 20% equity. Lenders will be more than willing to help you refinance your mortgage with such an investment in your portfolio.

Shopping For Better Deals
The refinancing market is a competitive field. Lenders are trying to out-compete each other with special deals on rates and fees – especially those online. By comparing online lenders you can find these special offers. Usually you will need to submit your loan application online to qualify.

Comparison shopping will also help you find the cheapest refinancing. To save time, you may want to use a mortgage broker, who will quote you a number of offers.