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The truth about bad credit mortgage loan financing

This is a financing-article that will tell you the truth about bad credit mortgage-loan financing.

What bad credit financing is exactly

First of all, let's define "bad credit financing." Bad credit financing is a type of mortgage-loan financing that you can get even when you have "bad credit." So let's also define "bad credit." Bad credit is when you have a credit score that's say, 615 points or less.

Now 615 points for a credit score obviously isn't as bad as a score in the 500's or as bad as a score in the 400's. But that's really where the threshold of bad credit starts: at 615 points.

Is your credit score 615 or below? Just so you don't feel bad - the average US credit score is about 680 - and that ain't too much higher than 615. (I met an angel once who had a score of 885 - it was rare and beautiful).

The truth about bad credit financing

Anyhoo, at first glance, bad credit financing seems awesome, cause you can still "get mortgage financing" for your home, and still stop renting and start owing instead. And being able to obtain financing is great, and so is being able to own a home. But, do you want to know the truth?

Bad credit financing is more "expensive" than "non-bad credit" financing. The mortgage-rate you'll pay for bad credit financing is significantly higher than the normal mortgage-rates. How much higher? Well, sometimes just a little bit: like, say the rate you could get for normal/non-bad-credit financing is 4.5%. Some bad-credit financing is available at a percentage or two higher: like at 5.5% or 6.5%. And that ain't so bad.

But - once your credit score is off the charts (like in a bad/low way) your rate for your mortgage-financing could end up being double, even triple what the rate would be for normal financing. Like you could pay 9% or 12.5% - instead of 4.5%. (gulp!)

Should you, or shouldn't you.....?

The point? Sometimes it might be better to wait a bit (like 6 months to a year) and work real hard to 'fix your bad credit' - and then you can get "normal financing" at a "reasonable rate."

Do you think you can only get bad credit financing? Talk to one of The Mortgage Store Online's brokers - see where your credit score is (they'll do a free credit check for you).

Your broker will first of all be able to tell you if your credit score is actually bad or not. Then they'll tell you what your lending options are - and what the rates will be for those lending options. If the broker tells you your credit rate "ain't the best" - ask them how to fix it, and how long it will take to fix it so you can qualify for "non-bad-credit financing" in the future. (Sometimes it's real easy!)

Apply online and get your finance loan now!

If you want to get more info about bad credit financing, contact The Mortgage Store Online's brokers by using the finance contact form or by calling them at 1-866-880-2577.

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The Mortgage Store Online, Inc.
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Home Mortgages: Phone: 1-866-880-2577 Fax: 1-866-270-1984
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