Subprime Mortgages Low Down Payments And No Pmi

Subprime Mortgages – Low Down Payments And No Pmi
Sub-prime mortgages offer financing for those with poor credit to​ finance the​ purchase of​ a​ home .​
Today’s sub-prime mortgages offer low down payment options with no private mortgage insurance (PMI) .​
As a​ result,​ more people are finding it​ easier to​ buy a​ home.
Sub-prime Mortgage Options
Sub-prime mortgages come in​ as​ many flavors as​ conventional loans .​
Just like with a​ conventional loan,​ low down payments or​ zero down will increase your interest rate .​
However,​ you​ have no PMI premiums to​ pay.
Another option is​ to​ buy points to​ lower your interest rate as​ well,​ but this only makes sense if​ you​ plan to​ keep your mortgage for seven or​ more years .​
a​ better plan is​ to​ improve your credit score,​ and then refinance in​ two to​ three years for a​ conventional loan.
Sub-prime Lenders
More and more financing companies are offering sub-prime mortgages .​
Even Freddie Mac and Fannie Mae offer sub-prime programs .​
So to​ find the​ best rates and terms,​ you​ should request quotes from both conventional and poor credit lenders.
When you​ are comparing lenders,​ look at​ the​ APR for a​ quick check .​
The APR includes both interest rates,​ points,​ and fees .​
However,​ you​ will also want to​ look at​ terms,​ making sure there are no fees for refinancing or​ early payment.
To quickly gather this information,​ make use of​ the​ internet .​
Most lenders offer quotes online .​
You can also request quotes from a​ mortgage broker,​ who will provide you​ with several quotes at​ once .​
When you​ find a​ lender with a​ competitive bid,​ you​ can request more information or​ apply online for speedy approval.
Sub-prime Benefits
Subprime mortgages provide you​ the​ chance to​ purchase a​ home while improving your credit history .​
Instead of​ throwing your money away on​ rent,​ you​ are building up equity in​ your home that you​ can tap into latter .​
You can also deduct your interest from your taxes.
Regular mortgage payments will also improve your credit history .​
So not only will your rates improve with other types of​ credit,​ but you​ can also refinance your mortgage in​ a​ couple of​ years for lower interest payments.

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