| Many people make the assumption that since they | | | | mortgage loans. While persons who have a good |
| have less than perfect credit, they are barred form | | | | credit history can get loans with an interest rate |
| owning their own home. They are under the impression | | | | ranging between 5-7%, your interest rate will be |
| that no one will trust them with a mortgage; while this | | | | significantly higher if your credit history is a poor one. |
| may have once been the case, the rules have | | | | The bank does this as a way of protecting |
| loosened up somewhat in the last several years. | | | | themselves from the risk of default. You should shop |
| Rather than eschewing providing mortgages to people | | | | around to find the lowest possible interest rate. This |
| with a poor credit rating as they were traditionally | | | | can take a while, but will pay for itself in the savings |
| prone to doing, banks and other mortgage providers | | | | you will see. |
| have instead come up with mortgage products which | | | | You should be mindful of the down payment |
| are great for people with bad credit. These bad credit | | | | percentage when shopping around for bad credit |
| mortgage loans can help families who otherwise would | | | | mortgage loans. This is a small percentage of the total |
| be unable to buy a home. | | | | payment, usually around 5% - this may be higher with |
| You could have ended up with a bad credit rating for | | | | some bad credit mortgage loans however, this is |
| any number of reasons. You may have overextended | | | | something else to keep in mind as you look around. |
| yourself financially with a credit card, had emergency | | | | The monthly mortgage payments can be rather high |
| medical expenses which you were unable to repay or | | | | with these loans. You can reduce this by choosing a |
| a variety of other reasons. However it happened, you | | | | 30 year mortgage rather than a15 year one. For |
| can still qualify for bad credit mortgage loans. There | | | | example, if you buy a home which costs $150,000, you |
| are some very important differences between these | | | | will pay about $800 per month on a 15 year mortgage, |
| bad credit mortgage loans and an ordinary mortgage | | | | as opposed to a little over $400 on a 30 year |
| loan, however. | | | | mortgage. This amount, it should be noted, does not |
| Most noticeable is the difference in interest rate | | | | include interest. |
| between a traditional mortgage loan and bad credit | | | | |