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Bad Credit? Best Bad Credit Mortgage Refinance Companies • Benzinga

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Nobody’s perfect. Your credit reports reflect your payment history and can hamper refinancing. If you’re looking to refinance your mortgage, credit dings can cause some gray hairs. Benzinga’s pulled together a guide to help you find the best mortgage refinance companies — no matter your credit.

Best Mortgage Lenders to Refinance with Bad Credit

Here are Benzinga’s top picks for mortgage lenders to refinance with bad credit.

1. PacShores Mortgage: Best for Working with Bad Credit  

PacShores Mortgage offers experience working with bad credit. It provides lending at up to 70% of your home value or purchase price, and nearly all applicants are accepted. And prior bankruptcies, short sales, foreclosures and low FICO scores are all considered.

Alternate documentation is accepted in lieu of financial statements, pay stubs and tax returns.  Available loan programs include refinance and purchase of single-family, multi-units and condos, apartments, and commercial and buildable lots. PacShores does not publish rates. Again, apply for your individualized quote.

2. Network Capital: Best for Variety

Whatever your situation, it’s likely that Network Capital can help you get the home loan refinance you need. Its programs include VA IRRRL (a no-appraisal, no-income verification, limited documentation required loan), FHA Streamline (a no-appraisal, no employment or income verification, reduced FICO score loan) and HARP 2.0 (a no-appraisal, lowered loan-to-value, income, asset and FICO credit score loan). 

Current refinancing rates are:

  • 30-year fixed 3.375%
  • 30-year fixed FHA 2.75% 
  • 5-year fixed 3%
  • 5-year ARM is 3.375%

3. Citibank: Best of the Big Boys

Citibank is your best bet among larger banks. In addition to 30-year and 15-year fixed, Citi offers FHA loans, VA home loans and jumbo loans. You’ll enjoy the clout of a big bank with the personalized attention of a smaller organization. The rate on a 30-year fixed mortgage is 3.375%, while the rate on a 15-year fixed mortgage is 3.125%. 

Credit Scores and Refinance Rates

It’s normal to worry your damaged credit may affect your ability to refinance. To ease your mind, take a look at the minimum credit score requirements and current refinance rates from companies ready to work with bad credit.  

Can You Refinance with Bad Credit?

Yes, you can refinance with bad credit. However, there are things you should know and steps you must take in order to make it happen. 

First, know that refinancing your mortgage can play an important role in your financial life. In a nutshell, a refinance simply replaces your current home loan with a new second loan. After this takes place, your mortgage will be held with the new lender. You will have a new, lower interest rate and a different amount of time to repay the loan.

If your credit history is less than perfect, there are a few reasons you might want to refinance. 

  • Take cash out of your home. A cash-out refinance may be a good option to help you manage debt, make a large purchase or repair your property. This involves a higher balance than your original, and the remainder may be withdrawn in cash. You must have equity in your home to take out this type of loan.
  • Adjust loan terms. You can pay off your loan more quickly, switch to a longer loan term or choose a lower interest rate with a refinance loan. 
  • Get rid of Private Mortgage Insurance. If you have an FHA loan and you put less than 10% as a down payment, you’re carrying PMI insurance on that mortgage. By refinancing to a conventional loan, you can eliminate PMI and save cash. 

If you have bad credit, however, be aware that some of the above options may not be available to you. Even with past credit issues, though, you still have other options for a mortgage refinance. These include:

  • Taking out an FHA Streamline Refi: Here you can refinance your original FHA loan, minus the typical income verification and credit check. However, keep in mind that your premium cannot increase by more than $50 per month, you can’t have missed a payment in the last year, and there must be a tangible benefit such as a lower interest rate after the refinance.
  • Opting for a VA Interest Rate Reduction Refinance Loan: Also known as a VA IRRRL, these loans let you refinance with no appraisal, credit check, or income verification and can be an easy way to refinance your original VA loan. You must be 270 or more days out from closing on your original VA loan and have made at least a half-year’s worth of consecutive timely payments.

If you’re ready to apply, here’s an outline of the refinance application process:

  • Choose a lender when you’re sure you fit the company’s application criteria.
  • Apply with required documentation and arrange for an appraisal.
  • Read your closing disclosure carefully and understand the terms, conditions and costs associated with your new loan.
  • Finally, meet your lender at closing to sign documents and make it official. 

Keep in mind — work to improve your credit score before you refinance to help you get better terms and lower costs. There are actions you can take each day to improve your credit. Here is the breakdown of the factors that make up your credit score:

  • Payment history is the single most important factor and accounts for 35% of your score. Do you pay your bills on time? If the answer is no, now’s the time to change that habit.
  • Credit utilization creates 30% of your score. This factor indicates how much you rely on credit rather than cash. To calculate, divide your current revolving credit by the total of all your revolving credit limits. 
  • Credit history length is 15%. Typically, the longer the better.
  • Credit mix accounts for 10%. How well you manage products like car and student loans come into play here, and the more diverse your credit, the better. 
  • New credit — recently opened accounts and lender inquiries — comes in at 10%. Less is better here. 

How Can I Get the Best Refinance Loan Possible?

You don’t have to be perfect, and your financial past doesn’t need to define your future. Do your homework and determine your needs — for the present and beyond. With this clear understanding, you’ll be able to find a lender to help you secure a mortgage refinance loan.

Read all documentation before you sign it. While this may seem obvious, many people neglect the fine print — and live to regret it. Finally, work to improve your credit so that you can obtain loans more easily and with lower rates.

Frequently Asked Questions

Q: How do I get pre-approved?

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Q: How do I get pre-approved?

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Allison Landa

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First, you need to fill out an application and submit it to the lender of your choice. For the application you need 2 previous years of tax returns including your W-2’s, your pay stub for past month, 2 months worth of bank statements and the lender will run your credit report. Once the application is submitted and processed it takes anywhere from 2-7 days to be approved or denied. Check out our top lenders and lock in your rate today!

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Q: How much interest will I pay?

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Q: How much interest will I pay?

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Allison Landa

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Interest that you’ll pay is based on the interest rate that you received at the time of loan origination, how much you borrowed and the term of the loan. If you borrow $208,800 at 3.62% then over the course of a 30-year loan you will pay $133,793.14 in interest, assuming you make the monthly payment of $951.65. For a purchase mortgage rate get a quote here. If you are looking to refinance you can get started quickly here.

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Q: How much should I save for a down payment?

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Q: How much should I save for a down payment?

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Allison Landa

1

Most lenders will recommend that you save at least 20% of the cost of the home for a down payment. It is wise to save at least 20% because the more you put down, the lower your monthly payment will be and ultimately you will save on interest costs as well. In the event that you are unable to save 20% there are several home buyer programs and assistance, especially for first-time buyers. Check out the lenders that specialize in making the home buying experience a breeze.

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Bad Credit Credit Cards – Loans Bad Credit Online – Euronext News Today – Euronext News Today – Elliptic Labs AI Virtual Proximity Sensor INNER BEAUTY® Shipping on Xiaomi’s Top-Selling Redmi Note 10 and Note 10s Smartphones | Fintech Zoom | Fintech Zoom | Fintech Zoom | Fintech Zoom

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Bad Credit Credit Cards – Loans Bad Credit Online – Euronext News Today – Euronext News Today – Elliptic Labs AI Virtual Proximity Sensor INNER BEAUTY® Shipping on Xiaomi’s Top-Selling Redmi Note 10 and Note 10s Smartphones | Fintech Zoom | Fintech Zoom | Fintech Zoom

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Euronext News Today – Elliptic Labs AI Virtual Proximity Sensor INNER BEAUTY® Shipping on Xiaomi’s Top-Selling Redmi Note 10 and Note 10s Smartphones

OSLO, Norway–(BUSINESS WIRE)–Elliptic Labs (EuroNext Growth: ELABS.OL), the first company to utilize software to replace infrared hardware sensors in smartphones, is announcing another design launch with Xiaomi (HKSE: 1810.HK), the world’s third largest smartphone manufacturer. Powering both Xiaomi’s top selling Redmi Note 10 (Qualcomm Snapdrdagon 678 chipset) and Note 10s (Mediatek Helio G95 chipset) smartphones with the software-only AI Virtual Smart Sensor Platform, Elliptic Labs’ AI Virtual Proximity Sensor INNER BEAUTY enables the Redmi Note 10 Series elegant bezel-less designs. Starting with the initial Redmi Note launched in 2014, the Redmi Note series has now shipped over 200 million units globally across its lifetime. Elliptic Labs has previously announced the contract win related to this launch.

“The versatility and value of Elliptic Labs’ AI Virtual Smart Sensor Platform has been demonstrated repeatedly by Xiaomi’s adoption throughout its smartphone portfolio,” shared Elliptic Labs’ CEO Laila Danielsen. “The latest Xiaomi product line to benefit from the AI Virtual Proximity Sensor is the Redmi Note series, which has been recognized as one of the best selling smartphones models in the industry. Powering Xiaomi’s broad range of phones, from the flagship Mi 11 to the mass-volume and best selling Redmi Note line, truly shows the AI Virtual Smart Sensor Platform’s powerful capabilities to apply any device’s existing hardware sensors to create meaningful and high-performance experiences.”

About Elliptic Labs

Elliptic Labs is headquartered in Norway with presence in the USA, China, South-Korea, Taipei, and Japan. Founded in 2006 as a research spin-off from Norway’s Oslo University, Elliptic Labs filed its IPO with the Euronext Growth Market in October, 2020. Elliptic Labs is now a global enterprise targeting the smartphone, laptop, IoT, and automotive markets. The Company’s patented AI software combines ultrasound and sensor-fusion algorithms to deliver intuitive 3D gesture, proximity, and presence sensing experiences. Its scalable AI Virtual Smart Sensor Platform creates software-only sensors that are sustainable, eco-friendly, and already deployed in over 150 million devices. Elliptic Labs is the only software company in the market that has delivered detection capabilities using AI software, ultrasound and sensor-fusion deployed at scale. Elliptic Labs’ technology and IP are developed in Norway and solely owned by the Company.

Euronext News Today – Elliptic Labs AI Virtual Proximity Sensor INNER BEAUTY® Shipping on Xiaomi’s Top-Selling Redmi Note 10 and Note 10s Smartphones

Loans Bad Credit Online – Euronext News Today – Euronext News Today – Elliptic Labs AI Virtual Proximity Sensor INNER BEAUTY® Shipping on Xiaomi’s Top-Selling Redmi Note 10 and Note 10s Smartphones | Fintech Zoom | Fintech Zoom

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Judge Says Navient Misled Student Loan Borrowers—What This Means For Your Student Loans

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Navien
NAVI
t, the nation’s largest student loan servicer, just got some bad news.

Here’s what you need to know — and what it means for your student loans.

Student Loans

According to a Washington state judge, Navient — which manages $300 billion of private and federal student loans for 12 million student loan borrowers — deceived borrowers and their cosigners who sought to be released from their student loans. According to Washington Attorney General Bob Ferguson, the judge’s order issued yesterday says that:

  1. Deceptive Practices: Navient engaged in deceptive practices regarding its cosigner release policy;
  2. Consumer Protection: Navient violated the Consumer Protection Act;
  3. Cosigners: Navient promoted co-signer release for private student loans, but misrepresented the way Navient implemented the program; and
  4. Cosigner Release: Navient didn’t disclose that it’s difficult to get a cosigner release.

This is the first time that a judge ruled that Navient violated a consumer protection law since a state attorney general or consumer protection agency sued Navient. For context, a cosigner is a family member, spouse or other individual who assumes equal financial responsibility for your student loans when you have a limited credit history or bad credit. Often, the cosigner has strong credit and income, which can not only help you get approved for student loans, but also can help you get a lower interest rate. The goal of a cosigner release is for you to demonstrate enough financial responsibility through student loan repayment that your student loan servicer will release your cosigner from any further financial responsibility. Once you make multiple, on-time, consecutive student loan payments (typically for 12 to 48 months), your student loan servicer can release your cosigner. However, Ferguson says this didn’t necessarily happen, particularly for student loan borrowers who paid their student loans in advance. For example, Ferguson alleges that:

  • Even if you made on-time, consecutive student loan payments with Navient, you may not have gotten a cosigner release.
  • Let’s assume your monthly student loan payment is $100.
  • If you make a one-time, lump-sum payment of $500, the next four months would show a $0 student loan bill.
  • Let’s then assume you didn’t make any student loan payments during the next four months.
  • Even though you didn’t owe any student loan payments during months two through five, Navient didn’t count that lump-sum payment from month one as five monthly payments of $100.
  • As a result, even though your student loan account was current and paid in advance, Navient said your failure to pay each month (even with a $0 balance) would not count as consecutive monthly payments toward a cosigner release.

Ferguson’s point is that Navient didn’t disclose to student loan borrowers that failing to make a payment every month — even if you paid student loans in advance — would disqualify you from meeting the requirement to make consecutive payments and you would have to start over before you could be eligible for a cosigner release. Navient, which spun off from Sallie Mae, has since changed this policy and now counts a lump-sum student loan payment as sufficient for multiple student loan payments.

The lawsuit against Navient, which dates to 2017, isn’t over. Ferguson also alleges that Navient engaged in deceptive practices in servicing and collecting student loans as well originating risky subprime student loans to borrowers who attended for-profit colleges. Ferguson alleges that Navient misapplied student loan payments and improperly directed distressed student loan borrowers into student loan forbearance instead of income-driven repayment plans, the latter of which would have been more favorable to borrowers.

“We believe our disclosure was clear and fairly applied under Washington state law,” Paul Hartwick, a Navient spokesman, told Marketwatch. “Navient’s focus has been, and continues to be, assisting student loan borrowers to successfully repay their loans.”


What This Means For Your Student Loans

Washington State’s lawsuit against Navient is scheduled for trial in April 2022. While this order grants partial summary judgment, there are no monetary judgments at this juncture. This lawsuit should be a good reminder to check your student loans, understand your student loan payment options, and double check that your student loan payments have been applied correctly. If you have questions about your student loans, your student loan servicer typically is a good resource. In addition to managing your student loan payments, your student loan servicer can answer questions about various student loan repayment options. This includes question about income-driven repayment, student loan forbearance and cosigner release. However, you should conduct independent research to make sure you’re fully informed about all your options. Why? Your student loan servicer may not have all the answers, or they may not have the optimal solution for your unique goals and circumstances. Multiple state attorneys general, as well as the Consumer Financial Protection Bureau (CFPB), have sued Navient based on similar allegations. If you have an issue with your student loan servicer, you can contact the CFPB — Office of Student Loan Ombudsman, the U.S. Department of Education / Federal Student Aid, the Federal Trade Commission (FTC), your state attorney general, or your state’s department of education.

As you navigate student loan repayment, here are some potential options to consider:


Student Loans: Related Reading

17 million won’t get stimulus checks—expect the same for student loan cancellation

Student loan cancellation excluded from new stimulus package

Student loan cancellation less likely if stimulus checks get cut

Bernie Sanders: Let’s cancel student loans without Republicans

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Loans Bad Credit Online – Loans Bad Credit Online – Loans Bad Credit Online – Bad Credit Credit Cards – Consumers Paid Down Credit Cards Again! By Most Ever. But Cash-Out Refis Spiked to Highest since 2005/6 Peaks. What Gives? | Fintech Zoom | Fintech Zoom | Fintech Zoom | Fintech Zoom

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Loans Bad Credit Online – Bad Credit Credit Cards – Consumers Paid Down Credit Cards Again! By Most Ever. But Cash-Out Refis Spiked to Highest since 2005/6 Peaks. What Gives? | Fintech Zoom

Bad Credit Credit Cards – Consumers Paid Down Credit Cards Again! By Most Ever. But Cash-Out Refis Spiked to Highest since 2005/6 Peaks. What Gives?

They’re not the same consumers.

By Wolf Richter for WOLF STREET.

There is no monolithic American consumer. Each does their own thing. And the folks with credit card debts and other revolving credit such as personal loans – all of it high-interest rate debt – paid them down by record amounts in January, possibly using their stimulus money to do so.

And in the opposite direction, the folks who own homes have been extracting cash from their homes via cash-out refinancing their mortgages at a clip in Q4 not seen since the peak of the good old days before the housing bust in 2005 and 2006, and at record low mortgage rates while they lasted. But those two groups may not be the same people.

Paying down credit cards and other revolving credit. In January, consumers paid down their credit card balances by 3.6% from December and by 11.9% year-over-year, not seasonally adjusted, to $940 billion, according to the Federal Reserve Friday afternoon. It was the biggest year-over-year decline in the history of credit card data going back to the 1970s and blew by the year-over-year declines during the Financial Crisis:

There were only two periods in credit card history when balances dropped on a year-over-year basis, and for two very different reasons: First, during the Financial Crisis when consumers defaulted on their credit cards; and second, during the Pandemic when the government sent hundreds of billions of dollars in waves of stimulus payments to consumers, and some of this money was used to pay down credit card debts.

January is the hangover month after the holiday binge-spending-and-borrowing, and credit card balances (not seasonally adjusted) tend to drop from December as people are beginning to grapple with the consequences of their binge. Between 2013 and 2020, the decline in credit card balances from December to January averaged 2.4%. This year in January, credit card balances dropped by 3.6% from the already lowest December levels since 2016.

In dollar terms, credit card balances fell by $35 billion in January, not seasonally adjusted (red line), to $940 billion, having plunged by $153 billion from the peak in December 2019; and seasonally adjusted (green line) they fell by $10 billion in January, to $965 billion, having plunged by $128 billion from the peak in December 2019.

The cumulative two-year plunge during the Financial Crisis was larger than the drop during the first 10 months of the Pandemic. But the next stimulus packages is being put together in Congress, likely producing further drops in the future:

In the opposite direction: Cash-out Refis.

Historically low mortgages in the fourth quarter triggered a historic mortgage refi boom that exceeded the peaks before the housing bust. Amid this historic refi boom was a near-historic cash-out refi boom. According to a New York Fed report two weeks ago, the amount that homeowners extracted from their homes  in Q4 spiked to $63 billion, with borrowers on average extracting $27,000 from their homes (chart via New York Fed):

Homeowners used the proceeds from the cash-out refis to fund consumption and “investment opportunities, including home improvements,” as the New York Fed said.

So on one hand, consumers are paying down their expensive credit cards and other revolving credit; and on the other hand, consumers are borrowing a lot more against their homes.

It is possible that some folks with cash-out refis also have credit card debt and are using the proceeds from the cash-out refis to pay down their credit card debts, using historically cheap mortgage debt to pay down expensive revolving debt, and that would make a lot of sense.

But it is also possible that there is little overlap between these two groups – between those who paid down their credit cards, and those who increased their mortgage debts via cash-out refis.

In other words, it’s possible that people with credit card debts paid them down with their stimulus checks, but they may not own a home, or cannot do a cash-out refi because their credit score is too low, or because they don’t have enough equity in their home, or because their mortgage is in forbearance and/or delinquent – over 17% of FHA mortgages are delinquent, including those that were delinquent before they entered into forbearance.

So the theory that most of the cash-out refis were used to pay down expensive credit card debts doesn’t hold water. These are different consumers. As the New York Fed pointed out, the cash-out refis were mostly used to fund consumption or home improvements, such as a new deck and hot tub, which has been back-ordered because of the surge in demand, or speculative investments in what were then seemingly forever booming financial markets.

Suddenly rising mortgage rates to tango with refi boom.

Mortgage rates bottomed out in early January and have risen since then. The average 30-year fixed mortgage rate, according to the Freddy Mac benchmark index, increased from 2.65% in early January to 3.02% on average during the week ended Wednesday.  Since then, mortgage rates have further risen, which is not reflected in the data yet:

Mortgage rates remain ultra-low by historical standards, but they’re a little higher than they were two months ago – and there has now been a lot of hand-wringing in the financial markets about them, and folks have been clamoring for the Fed to do something to push down those mortgage rates, which has not been forthcoming at all.

But the more mortgage rates rise, the harder it is to make cash-out refis work. So while some consumers are creating a little extra room on their credit card for future consumption, other consumers will find cash-out refis to fund consumption more expensive and difficult to do.

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Bad Credit Credit Cards – Consumers Paid Down Credit Cards Again! By Most Ever. But Cash-Out Refis Spiked to Highest since 2005/6 Peaks. What Gives?

Loans Bad Credit Online – Bad Credit Credit Cards – Consumers Paid Down Credit Cards Again! By Most Ever. But Cash-Out Refis Spiked to Highest since 2005/6 Peaks. What Gives? | Fintech Zoom

Loans Bad Credit Online – Loans Bad Credit Online – Bad Credit Credit Cards – Consumers Paid Down Credit Cards Again! By Most Ever. But Cash-Out Refis Spiked to Highest since 2005/6 Peaks. What Gives? | Fintech Zoom | Fintech Zoom

Loans Bad Credit Online – Loans Bad Credit Online – Loans Bad Credit Online – Bad Credit Credit Cards – Consumers Paid Down Credit Cards Again! By Most Ever. But Cash-Out Refis Spiked to Highest since 2005/6 Peaks. What Gives? | Fintech Zoom | Fintech Zoom | Fintech Zoom

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