When you are considering refinancing an existing mortgage, there are certain things to watch out for. Especially if you have bad credit, there are things that you must think about before jumping head first into mortgage refinancing. One of the things to think about is what got you into the situation you are in now.
For instance, did your bad credit come from simply having too many bills? This is important, because refinancing your existing mortgage can either help or hurt this situation. If you can refinance the mortgage and get lower payments, then you are doing yourself a big favor. However, if you try to refinance the mortgage for a fewer number of years, your financial situation is not likely to improve. This will probably increase your monthly payments, meaning a greater burden every month.
If you are unable to pay all of your bills every month now, a bigger monthly mortgage note is going to make it worse. In addition, if you try to skip paying your higher mortgage, then you risk losing your home. Refinancing your mortgage should be used with the correct options to help your credit. That said, the right refi is a great way to lower your monthly payments.
Downs Financial can explain to you the refinancing options that can help your bad credit situation. We can look at your current expenses and get a loan that will fit your budget--and possibly improve it. Call us today and let us help you get on the road to better credit and a more financially sound future.