Why You Should Repair Your Credit  

When one person has bad credit, another person has very poor credit. Excellent credit, good credit, fair great, bad great and poor credit… one of these terms will be accurate for you.

Keep in mind, however, that your credit score is what will determine whether or not you’ll fall into the category of needing the bad credit mortgages. The magic credit number is often around 580.

Bad Credit Mortgages: What Lender Should You Go With

Due to the subprime mortgage crisis that led to the housing bubble burst, there are many lenders who suffered tremendous losses. These extreme losses have led to a tighter qualification process to prevent them from losing any more money.

When you’re in the market to purchase a new home, you want a mortgage lender who doesn’t mind doing bad credit mortgages.

Keep in mind, however, that you want lenders who give out bad credit mortgages and provide you with the lowest rates and haven’t tightened their standards because of the burst.

Bad Credit 1^st Mortgages: Why Having Good Credit Works To Your Advantage

It’s practically impossible to obtain bad credit  mortgages and get the lowest interest rate possible. When you have bad credit, you are a risk to companies. To deal with the riskiness of doing business with you, you’ll be given a high interest rate. The typical high interest rate is two percent more than persons with excellent credit.

Of course, the rates you qualify for will differ based on several things:

1. Income
2. Collateral
3. Credit score
4. Final loan amount

The ideal thing to do before applying for any kind of mortgage is to fix your credit score. Here’s an example as to why you should:

You see a home for $200,000 and want to make an offer…With a good credit score, your mortgage rate is at six percent with a monthly payment of nearly $1,200. After 30 years, you will have paid over $230,000 in interest on top of paying the $200,000 you initially borrowed.

With bad credit, the interest rate will be around eight percent and the monthly payments will hit near $1,500 a month. After 30 years of paying on the loan, you’d have paid over $325,000 in interest.

As you can see, a good credit score can save you more than $200 a month and about $95,000 in interest over the 30-year period.

When you compare the numbers, you can see that waiting six months is well worth it to fix any credit problems on your record. You can obtain a credit repair kit for the mere price of $1.97 for shipping.

This free credit repair kit can help you get the best mortgage interest rate possible by raising your credit score.