Refinance Mortgage Lenders Prime Lenders Vs Sub Prime Lenders

Refinance Mortgage Lenders – Prime Lenders Vs Sub Prime Lenders
Refinancing your mortgage can save you​ money through lower interest rates and smaller monthly payments .​
You can also choose to​ cash out all or​ part of​ your equity to​ pay off bills or​ to​ remodel your home .​
But which lender is​ best for you​ really depends on​ your credit.
For those with near perfect credit,​ a​ prime lender is​ your best choice for finding a​ low rate .​
But for those with some credit problems or​ who want flexible loan terms,​ then check out a​ sub prime lender for competitive financing.
Benefits Of Prime Lenders
Prime lenders usually offer the​ lowest rates with the​ lowest fees,​ but only to​ those with excellent credit .​
That means no late payments on​ mortgages or​ other loans in​ the​ last 24 months .​
You should also have a​ debt ration of​ 36 or​ less,​ meaning your monthly debt payments should equal 36% or​ less of​ your monthly income.
With a​ few late payments,​ you​ may still get approved with a​ prime lender .​
But your rates will probably be a​ percent or​ more over the​ conventional rate .​
You may offset this with a​ large equity base or​ large cash assets.
Benefits Of Sub Prime Lenders
Getting approved with a​ sub prime lender is​ much easier than with a​ prime lender .​
Even if​ you​ have had a​ bankruptcy or​ foreclosure in​ the​ last few months,​ you​ can get a​ refi mortgage.
You can also avoid the​ cost of​ private mortgage insurance premiums with a​ sub prime mortgage .​
Prime lenders require insurance if​ you​ have less than 20% of​ equity in​ your home .​
Sub prime lenders also offer a​ wider variety of​ terms and loan options.
Finding the​ Best Refinance Mortgage For You
Even within each category of​ lender,​ there is​ a​ great range of​ rates .​
In order to​ find the​ lowest costing refinance package,​ you​ really need to​ request mortgage quotes from several lenders before making a​ decision.
There is​ also the​ trend for financial companies to​ deal with both types of​ lending .​
So don’t rule out conventional lenders if​ you​ are looking for a​ sub prime mortgage.

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