Fast Free Mortgage Quotes Eliminate Subprime Mortgage Before Foreclosure Hits
| Written by Jen Berg |
Boston, MA -- Apr 27, 2007 -- /prbuzz/ -- Many subprime borrowers think they are stuck with a subprime loan forever. They don’t know that they can refinance any time to a lower rate. Most borrowers who had a subprime mortgage for 6 months or more and paid on time can refinance their loan to a low market interest rate. Borrower’s credit score can improve by 100 points just in 6 months if they pay their mortgage early and other loans on time. Those who have credit card debt should immediately pay them off or refinance their mortgage to pay off the credit card debt. High credit card limits can really hurt your credit scores.
There are couple things borrowers should know before buying or refinancing:
1)Before refinancing or buying a home every borrower should check their own credit history and scores. There are many companies that offer free credit monitoring and free credit reports. Knowing your credit history can help you find the right lender and a fair rate.
2)Don’t go to just one lender or broker. Once you know your credit scores you can shop around and find the lowest rate. Most subprime brokers will charge borrowers 2% to 5% points at closing plus they will make 2%+ points from the lender for selling you the highest interest rate. That is why borrowers need to shop around and ask brokers to disclose YSP (Yield Spread Premium) how much they are getting from the lender. If they are making over 1%+ you are getting a bad interest rate and if they are charging you over 1%+ at closing you are paying too much.
So before you buy or refinance your home know your credit score and compare lenders. http://www.rmdirect.net
About Us:
Jen Berg offers free debt consultation to borrowers nationwide.
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