Jul 24, 2009 2
Bad Credit Mortgage Refinance - What Interest Rate Will You Get?
Getting a bad credit mortgage refinance is all too commonplace today. With the withering economy and credit scores decreasing each and every day, many home owners would like to know what type of interest rate they would get on a bad credit mortgage refinance. This is a very difficult question to answer. The interest rate that you will get is strictly determined by your credit score, the value of your home, the equity in your home and several other factors that are unique to every situation. The one good thing that you have in favor for you at the moment is the fact that mortgage rates are near historically low levels, but not for long!
The 10 year treasury rate has been pushing higher since the beginning of last week and that trend is likely to continue. If this continues, look for average mortgage rates to work their way back above 6%. Sadly, this is going to come as a shock to many because they do not realize that mortgage rates are ready to pop. When they do, bad credit mortgage rates will skyrocket as well. If you thought you were going to get a 9% mortgage when average mortgage rates were at 5% just imagine what type of rate you will get if average mortgage rates shoot to 6% or 7%.
With this in mind, it is a very good idea to go ahead and get that mortgage application completed. If it has been sitting at your desk, now is a time to go finish it. If you have been thinking about going through the mortgage application process, go ahead and get started. If you wait a few weeks, you could see rates as much as 2% higher than they currently are. There are several advertisements on the internet and tv that offer an 800 number for you to talk to a representative. Do not take everything they say as the gospel, but they will be a resource you can use to get started.