Economic Conversation

Getting a bad credit mortgage refinance is very alluring at the moment because mortgage rates are extremely low.  With average mortgage rates around 5.25% many home owners would like to refinance and lock in close to these low rates even if they do have bad credit.  Based on your credit score, your mortgage rate could be as little as 1% higher than average rates all the way up to 5% to 10% higher than average rates.  The only way you will know is to actually contact a lender and find out.

The easiest way to contact a lender is to check the advertisements on the television and Internet.  These ads will offer an 800 number in which you can talk to a representative.  While there is no way the representative will be able to tell you the exact rate you are going to get, they will be able to give you a ball park figure of what you are looking at.  I would suggest that you know your credit score before you go through this process as it will speed things up.

It is important to access your credit score at least twice a year.  This will give you a great idea of what type of mortgage rate you are looking at.  If you do a quick google search, you can easily find out which rate bracket you are likely in based on your credit score.  That being said, things change daily as mortgage rates fluctuate on a daily basis.  Now is a great time to refinance though as mortgage rates remain near an all time low.