Yup. Google has gotten into the mortgage business. It’s in the credit card business and cd’s and savings business. But I’m only interested here about Google mortgage rates.

When I say Google’s gotten into the mortgage business, I don’t mean you can Google ‘mortgage rates,’ ‘mortgage refinance’ or ‘FHA mortgages’ and find banks and mortgage brokers; I mean you can go to www.google.com/advisor/mortgages and Google will show you refinance rates and new home loan rates for a $140,000 loan (on a property worth $200,000).

Description of Google Mortgage Rates Page

And it gives you several types of mortgages, 15-year fixed mortgage rates, 30-year fixed mortgage rates, 40-year fixed mortgage rates, and 3/1 ARM, 5/1 ARM,7/1 ARM and 5/1
ARM rates.

And a lot of nice charts about what those rates have been doing.

And (or should I say but?) if you click on one of them you’re not taken to the sites you usually see if you were to Google the same rates. Instead, you’re taken to a list of lenders/mortgage brokers who will pay Google a finder’s fee.

I don’t know how much. What I know is that Google is an affiliate for the companies on the list. If you buy through Google, Google makes money.

This is different from the sites you see on the right side of Google pages. The companies that advertise there pay Google each time someone click on their link. The amount is determined by the competition and is much lower than what Google receives if you buy from one of the lenders/mortgage brokers it’s an affiliate for.

Is Google’s mortgage initiative bad for you? Is it good for you?

It’s good for Google. It’s probably good for the companies it shows on its affiliate page. It’s good for you in as much as you have a list of lenders with their interest rates all on one page, so you can easily see differences.

Interested to find out what kind of current mortgage rates I get, I Googled ‘Google mortgage rates’ and I got a list that has lenders offering between 3.000% and 3.250%, with APR’s between 3.270% and 3.450%. I also got a list of everybody’s fees – between $0 and $3650, most around $1,200.

Google Mortgage Rates and Fees Caveat

If those were all the fees, you, the searcher would benefit enormously from Googling ‘Google mortgage rates,’ from dealing with companies in Google’s mortgage program. However, if you click on any lender’s detail page, you’ll see a disclaimer: those are/may be partial fees. You’ll only know all the fees after talking with a rep.

By the way, that’s not evil. There are many loans offered and many variations possible (including where you live; they work in many states.)

Whatever you do, ask them to give you a complete list of their fees (you want it in dollars and percentages… To Google’s credit, what they have is both in dollars and percentages). And ask them to agree in writing to pay what’s 5 or 10% above what they quote you. Once they have a good idea about your situation, they should be able to estimate quite accurately your closing costs.

Final point, when you’re looking at lender details pages, on the right side at the top, Google tells you the last time the information was updated.

Google Mortgage Rates – Conclusion

So, overall, Googling ‘Google mortgage rates’ gets you to a page that will save you time.

Google Mortgage Rates – What Are They? top

Unless you’ve lived somewhere outside the US, you know that current FHA mortgage rates are low, very low; all current mortgage rates are. They look like they’re going to be low for a long time. How do you take advantage of this situation?

If you can’t take advantage of the current FHA mortgage rates now, here are 10 things you can do to put yourself in a position where you can benefit from the very low FHA mortgage rates that are going to be around for a while.

Get a Mortgage Rate That’s Close to The Low Current FHA Mortgage Rates

1. Check your credit, remove mistakes, improve scores

Credit reporting bureaus are far from being perfect. Check on them, don’t let them get between you and the current FHA mortgage rates.

In my case, they once reported me late for months on a credit card with a limit of $5. Yes, $5. Worse, a card I never had. They also reported a credit card I had closed 3 years prior as open, with a $5,000 and change on it, which was close to the limit, and bringing down my scores.

I had those mistakes fixed, my score went up 70 points. 70 points meant thousands of dollars less in mortgage payments each year.

2. Build a steady employment record

FHA insured mortgages are for people with imperfect work or credit histories. But if you’re able to show that you’ve worked continuously for the past 2 years, your mortgage rate will be a lot closer to the current FHA mortgage rates.

3. Build a bill-paying history that shows you’re pay on time

If you pay on time for 12 months, you make FHA happy. But that’s the minimum. If possible, show more. The point is not to merely qualify for an FHA-insured loan but to take advantage of the low current FHA mortgage rates. That means, getting a mortgage loan with a low interest rate.

There’s a big difference between 5.15% and 7.25%, for instance. Specifically, $546 monthly payments vs. $682 monthly payments. Or $96,569 in interest over 30 years vs. $145,583 interest over 30 years.

4. Live on a budget

Create a budget and live according to the budget, making sure there’s money left over for the future mortgage payments. You can use that to show prospective lenders that you can do it.

5. Select your home target price

Once you’ve got your budget and you know how much you have left for mortgage payments, insurance, utilities, you can figure out how much house you can afford to buy.

FHA allows you to borrow up to 96.5% of the value of a home. That doesn’t mean you have to borrow that much. As a matter of fact, if you put up a bigger down payment you might get a lower interest rate. Might even be as low as the current FHA mortgage rates you see advertised in your area.

Dropping the interest rate from 7.25% to 7%, for instance, lowers your mortgage payment by $36 dollars a month for every $100,000 you borrow.

6. Save for the down payment

Again, the bigger the down payment, the lower the interest rate you’ll get, the lower your monthly payments.

7. Check current FHA mortgage rates again

When you’re ready to buy, Google ‘current FHA mortgage rates’ and use whatever rates exist that day to run your numbers again. If everything looks promising, look for a mortgage broker.

You could talk to your bank too. But, usually, mortgage brokers are able to get you a better rate than your bank can. Banks tend to have one rate for their customer and a lower rate when they sell mortgages wholesale (which is how mortgage brokers get them for you).

It’s not rocket science, but you need to do it and not fail, not even once, if you want your mortgage rate to be close to the current FHA mortgage rates.

There is a lot of reverse mortgage information out there, yet there is still confusion.  A reverse mortgage is a lot like a regular mortgage.  You have to own a home, you have to have equity in the home, you are charged a mortgage interest rate.

And there are some differences, the main one being that with a reverse mortgage you don’t make monthly payments.  Instead, the amount that you’d have to pay accumulates, so each month that passes, you owe the bank a bit more.  For that reason, the ratio loan to home value is lower.

An example to make this reverse mortgage information easier to understand.  Let’s say your home is worth $200,000 and the bank gave you a mortgage of $100,000 and your monthly payments are $0. Yes, $0 (the beauty of reverse mortgage loans).  And the monthly interest in dollars is $580. Let’s also say that you took the $100,000 in one lump payment.  Yes, it’s one of the ways you can get your reverse mortgage loan, in a lump payment.

So, each month you owe the bank $580.  After one month, the bank adds $580 to the $100,000 that you borrowed.  So, one month after you got your mortgage, you owe the bank $100,580.  The second month, the bank ads another $580 to what you owe them.  If you move out, you owe the bank the $100,000 you borrowed and the interest that you did not pay.  The longer you have this reverse mortgage, the more you owe.

Reverse Mortgage Information – Why Banks Give Reverse Mortgages

First, they do reverse mortgages because reverse mortgages are insured by FHA.  Then they do them because they make money.  Or, at least, they hope they will.

Let’s go with the above example, where the house is worth $200,000 and you get a reverse mortgage of $100,000.   With each reverse mortgage loan it makes, the bank is making a somewhat morbid bet.  Specifically, it bets that the value of your home by the time you move out or die will be higher than the amount you owe them.  Or, put another way, that you move out or die before the amount you owe them gets to be higher than the value of your home.

It’s morbid because you dying early enough is one of the components.  It’s a bet because you could live many, many years after there’s any equity left in the house.  It was $100,000 when you took out your reverse mortgage because the value of your home was $200,000 and you borrowed $100,000.  Only 3 things could have happened to the value of your home:

1.  It could go up (if it goes up only a bit, the bank can still lose if you live long),
2.  It could stay the same (the bank makes money if you die before the $100,000 equity is used up, loses otherwise)
3.  It could go down (if it goes down only a bit and you don’t end up living long, the bank can still make money).

To minimize the chances of loss, banks only give reverse mortgages to people where either the wife or the husband is 62 years old. Given the life expectancy of people in this country, giving a reverse mortgage to someone younger is way too risky.

Back To Reverse Mortgage Information And You

Here is what you need to know about reverse mortgages:

1.   You get reverse mortgages without income, assets or credit (except for current bankruptcy) qualification.  So you don’t have to do the bad credit mortgage dance.
2.   When you take out a reverse mortgage, you remain the owner of your home, the bank does not own it (the bank owns a lien against your home).
3.   Since you remain the owner, the title stays in your name.
4.   You (or your spouse) must be 62 years old to qualify.
5.   The home must be your primary residence (can’t take a reverse mortgage on an investment property or a summer home).
6.   If there’s no equity in the home when you die, your surviving family is not responsible for the part of the reverse mortgage loan the bank cannot    recover from the sale of the home.
7.   There is no penalty for paying off the mortgage loan early.
8.   A reverse mortgage, being a loan, is not taxable, so you won’t have to pay taxes on it.
9.   You can get your reverse mortgage loan either as a one lump payment, fixed monthly payments, a line of credit, or a combination of these three options.
10.  You can use reverse mortgage loans just as you would any other loan (for anything you want that is legal).
11.  Reverse mortgages become due when the borrowers no longer use the home as their principal residence (the borrowers sold the home, moved out permanently or died).
12.  You must have a Credit Counseling session with an FHA-approved counselor as part of your application for a reverse mortgage.  The consultation is free to you, can be done over the phone or in person and results in you getting a Counseling Certificate which you have to provide the bank before they’ll give you a reverse mortgage loan.
13.  If you have money in your reverse mortgage line of credit, you do not run into problems with Medicaid (has no effect on your Medicaid eligibility since this is a loan not income).
14.  Any interest you choose to pay during you have a reverse mortgage is deductible at tax time.  Of course, you don’t have to pay any of it

Reverse Mortgage Information – How Much Can You Borrow?

Since not all the people who are looking to get a reverse mortgage have the same circumstances and needs, the answer is: it depends.  Here is what it depends on:

1.   How old you are when you take out your reverse mortgage loan
2.   What kind of reverse mortgage payment you choose
3.   The value of your home (the more expensive the house the bigger your reverse mortgage loan can be) the day you take out your reverse mortgage loan
4.   The mortgage interest rate at the time your take out your reverse mortgage (easy to check, just Google current mortgage rates.
5.   Where you live might also be a factor, depending on which reverse mortgage product you choose.
6.   Generally speaking, the more equity you have, the more you can borrow; the older you are, the more you can borrow.

Reverse Mortgage Information – Costs

Reverse mortgages have costs similar to those of conventional loans (appraisal fee, title policy fee, mortgage insurance, and other normal closing fees).  Costs can be rolled into the reverse mortgage loan.

Reverse Mortgage Information – Conclusion

By way of conclusion, I’d like to summarize the main points:

1.    No income, assets or credit qualifying (except for current bankruptcy)
2.    Only for people who are at least 62 years old
3.    Home must be the borrower(s) primary residence
4.    The money is not taxable and it has no bearing on Social Security or Medicare benefits eligibility
5.    Reverse mortgage  money can be used for anything the homeowners want to use it
6.    Reverse mortgage money can be taken out in one lump sum, a line of credit, monthly payments, or a combination of these three methods
7.    You don’t have to make any monthly payments to the bank
8.    No prepayment penalties
9.    Borrowers remain owners, remain on title
10   The lender decides how much you can borrow.

I hope you found my reverse mortgage information useful and that you enter the world of reverse mortgages better prepared because of it.

A Home Mortgage Calculator Doesn’t Work in a Void

You and Your Home Mortgage Calculator

If you’re like me, you’d rather use an online home mortgage calculator than figure out mortgage payments and stuff like that any other way.  Which is good as it’s easy to find a home mortgage calculator on the internet.  You can find refinance calculators, PMI vs. 2^nd mortgage calculators, HELOC calculators, mortgage affordability calculators, closing costs calculators, APR calculators, any kind of home mortgage calculatoryou can think of. If you’re like most people, including me, you don’t do the calculations in cold blood.  You dream and let your emotions get involved.  Hope, greed, despair.  You run various scenarios, some based on things yet to come that are a long shot, out of your control. It’s human nature.  You buy too much house.  Or not enough and you regret it later.  But usually too much.

Your Bank and Its Home Mortgage Calculator

Turns out, banks do it too.   Who would have thunk it, right?  Except that when your bank takes out its home mortgage calculator the emotion is always greed. The Most Common Home Mortgage Calculator Mistake People Make There’s one way in which their emotion interferes with the home mortgage calculator that is very common.  Most people don’t seem to know it, though.  So, the game is rigged from the beginning to work against them.  Banks are always willing to give you more mortgage than you’re qualified for. I know, it sounds like a contradiction.  But think about it.  You apply for a mortgage loan, the bank looks at your finances, determines the mortgage loan they’re willing to give you based on a percentage of your debt to your income. If your debt to income is in the low 30’s, you’re doing well.  If it’s in the high 30’s, you’re not doing well anymore.  But many people are told they qualify for mortgage loans that put them in the 40% rate, or even 45%. Debt-to-income ratio 36% or less: For most people this is healthy. 37%-42%: You’re not in trouble yet, but you could easily get there.. 43%-49%: Danger!  Danger!  Financial difficulties are around the corner. 50% or more: Get professional help. Source: Gerri Detweiler, author of The Ultimate Credit HandbookBut think about it.  Even if you’re staying at 30%, if your income is small, you’re in a precarious position.  So take out your home mortgage calculator, figure out the payments, make sure all your monthly payments for everything you owe come to less than 36%. So why do banks give you more mortgage than it’s good for you? More than their very own mortgage calculator says it’s too much? Greed, of course.

They assume that since you have a certain credit history, you’re likely to keep having the same kind of history.  They also assume that you’re not going to hit rough terrain.  And they’re right.  On both accounts.  Accidents are, by definition, rare.  People don’t suddenly become less responsible.  Usually, only a small number of mortgage loans go bad. But the price is a lot steeper than just a bad credit score.  You lose mobility.  You lose on future opportunities.  Which is fine with the banks.  You did, after all, get a bigger house or vacation then you would have gotten other wise.  Or you paid off something you got tired of.  No mortgage payment calculator will make it right for you.

A Bank Pays Too When It Lets Emotions Use Its Home Mortgage Calculator

But the penalties are not as harsh – we bail them out after a while. Recently, the bankers’ bet backfired.  Lots of borrowers have defaulted.  Lots of borrowers are paying a very steep price for having had that vacation or that larger house.  Or a house in a better neighborhood.  Or an investment. They used their home mortgage calculator.  They used them well.  They might even have accounted for their own emotions.  But they did not count on the bank’s emotion.  And, unfortunately, home mortgage calculators don’t have an ‘add emotion’ button.  Make sure you add it in though.  When dealing with mortgages, you’re dealing with compound interest.  A little mistake becomes a big mistake in no time flat. Since math is only as good as the emotions pushing the person doing the calculations, a home mortgage calculator is only as good as the person doing the calculations. If you tell your home mortgage calculator to figure out the monthly payment for a specific situation that’s out of your range but, with a bit of luck (perhaps a promotion) could be in your range, your home mortgage calculator will tell go for it if that’s what you want it to say.

Home Mortgage After Bankruptcy Is Possible – And Fairly Soon

If you’re like many people, you may think that you can’t get a home mortgage after bankruptcy proceedings start or that you have to wait years and years before you can do it.

That’s not the case.  You can get a home mortgage after bankruptcy, even the day after, if you are willing to pay the price.

The rate of your first home mortgage after bankruptcy depends on you to a large extent.

What the current mortgage rates when you are ready to get another mortgage is the other main factor. Just felt I had to say it.

There are several things you can do to get a decent mortgage after bankruptcy sooner.
But first, two facts:

1. If you filed Chapter 7, you can refinance a mortgage or buy a new home the day after your bankruptcy is discharged.
2. If you filed Chapter 13, you can refinance a mortgage or buy a new home 6 months after the filing date. (There are many mortgage loan programs that will pay off the balance remaining on your Chapter 13.)

Home Mortgage After Bankruptcy Options

The best home mortgage after bankruptcy option is an FHA mortgage loan. You can get one as soon as you have 12 consecutive months of timely payments if you filed Chapter 13 (24 months if you filed Chapter 7).

The 4 Actions You Can Take to Shorten the Time to Decent Home Mortgage After Bankruptcy:

1.  Get a hold of your credit report and make sure there are no errors (like debts eliminated by the bankruptcy still showing in collection).
2.  Get new credit.  You will need two types:

3.  Secured cards will be easier to get.  Get one that has no application fee, low annual fees, reports to all three major credit bureaus, converts to an unsecured card after a while. You can obtain a major credit card.  Why? Lenders understand what bankruptcies do and that you cannot file again for years (6 for Chapter 13, 7 for Chapter 7).

4. Pay bills on time every time.  Different lenders have different grace periods, and different number of days before they resort to collection agencies.  If they report to credit bureaus, they all report if you’re late 30 days.  The best thing to do is to make sure your creditors receive the payment before the due date.

Make sure credit reporting agencies don’t report mistakes (like accounts that were wiped out by the bankruptcy being reported as being in collection).

How long does it take till you can get a home mortgage after bankruptcy with most lenders? Two years.  Most lenders will want to see two years of new, good credit history.

However, a home mortgage after bankruptcy happens a lot faster with FHA, as soon as 12 months.

Bankruptcies are depressing as hell, I know.  But ‘home mortgage after bankruptcy’ is not just words people use to search in Google.

The amount of information about reverse mortgages on the internet is large, yet people are confused.  It’s a recent concept and the program has many requirements.

Reverse mortgages are loans that use homes as collateral and don’t need to be repaid as long as borrowers live in their home.  The repayment begins one year after the last surviving home owner moves out or dies.

The amount you can borrow with reverse mortgages is based on how old you are when you apply.  The older you are, the more you can borrow.  There are other factors, like current mortgage rates.

Here is all the reverse mortgage information, pros and cons, you need to know to make an informed decision:

Pros of reverse mortgages:

1.  You stay in your home without making payments. Repayment with reverse mortgages starts 1 year after homeowners move out or after the surviving homeowner passes away.
2.  There are many ways of getting a reverse mortgage loan

• lump sum
• equal monthly payments for as long as at least one borrower lives in the home
• like it was a line of credit (when you want to, any amount you want, till you get it all)
• part of it in monthly installments, part of it when you want in the amounts you want for as long as one of the borrowers lives in the home
• part of it in monthly installments for a period you choose, the rest when you want in the amounts you want.

3.  Since reverse mortgages are a loan and not income, the money you get is not taxed.
4.  Since you don’t have to make payments, there is no need to prove you can repay, no credit or income verification.
5.  If there’s equity in the home to be inherited, the heirs will inherit it (they do have to pay off the loan.
6.  If the home is worth less than what you borrow, your heirs don’t have to pay back the balance that remains (though the lender gets the home).
7.  Reverse mortgages are refinances, so your current mortgage is paid off and, if there’s enough equity in your home, you can pay off other loans as well.
8.  Reverse mortgages, not being income, do not interfere with people’s eligibility for Medicare and other government programs.

The cons of reverse mortgages

1.  The fees associated with reverse mortgages are higher than those associated with traditional mortgages.  The loan origination fees may be higher.  There’s the initial FHA mortgage insurance that is added (2% of the value of your home) to the closing costs.  And there’s the monthly FHA mortgage insurance (0.5% of the reverse mortgage balance) added to the interest rate.
2.  The equity in your home goes down every month.  The payments you do not make are added up against the equity.
3.  You can borrow less in terms of a percentage of home value, only up to 60%, than you can with traditional programs.

Reverse mortgages conclusion and further help

Now you know the pros and the cons of reverse mortgages, you’re ready for the next step: find out the costs for you and the process.  An easy way to do that is to speak with an FHA approved counselor.  You can find a HUD-approved counselor online at https://entp.hud.gov/idapp/html/hecm_agency_look.cfm -just fill your state, city and zip code.  Or you can call (800) 569-4287.  Counseling is low-cost and may even be free. Counseling is required for anyone applying for reverse mortgages; it’s part of the application process.

The advantages of reverse mortgages far outweigh the disadvantages.

What is APR (Annual Percentage Rate)?

APR (Annual Percentage Rate is the true cost of a mortgage loan and there are two kinds of annual percentage rates: the nominal APR and the effective APR. The one you should be concerned with is the effective APR.

Nominal Annual Percentage Rate (Nominal APR)

The nominal APR is the simple interest rate for the mortgage loan for one year. The effective APR is the compound interest rate and any fees that were rolled into the loan (if any), it’s the total interest paid divided by the amount of money received. In other words, it’s the effective APR you should concern yourself with.

The mathematical formula for finding the Annual Percentage Rate is complex. The easiest way to calculate it is to use an online home mortgage calculator.

Effective Annual Percentage Rate (Effective APR)

The effective Annual Percentage Rate is problematic. On 4 levels:

1. No one knows exactly what the exact fees involved in your mortgage are going to be until late into the mortgage process, sometimes till closing. When mortgage brokers or loan officers quote you an Annual Percentage Rate, they may or may not be honest. Even if they are honest, they’re basing it on what’s been typical for them. What if your loan is not what’s typical for them?

2. That is not the only thing that can be different. By the time of closing, they might have to change lenders and/or programs. These changes can drastically change the total amount you are going to pay in fees, therefore, the total amount that can be included in the mortgage (payments).

3. In addition, the APR quotes you get online are based on sample loan amounts. If your loan amount is not exactly the same, your APR is going to be different.

4. Since there are so many fees that may but don’t have to be included in the APR, it is easy to manipulate APR’s. And there are mortgage brokers and loan officers who do it. They lower intentionally the APR. To safeguard against being taken in in this manner, ask for a list of all their fees, rates, and points. Also get a written guarantee.

Annual Percentage Rate (APR) Caveats

Generally speaking, APR quotes that are one quarter of a percent lower than the other quotes you’re getting should raise red flags. The odds that they’re not true are really high. Or else they are not basing their rates, fees, or programs on Fannie Mae or Freddie Mac.

Final caveat, APR’s are a function of the loan amount and the term. When comparing mortgage loans, do not use the Annual Percentage Rate unless you’re looking at the same loan amount and the same terms.

So, a mortgage loan with a quoted Annual Percentage Rate of 6.2% might be, in real life, less expensive than one with a quoted Annual Percentage Rate of 6.5% (because it included fees you’ll have to pay that the first one did not).

In other words, Proceed with caution: Annual Percentage Rate (APR) is always on the prowl!

Not All Bad Credit Home Loans Were Created Equal

You already know that bad credit home loans exist even during hard financial times.  You also know that bad credit means higher mortgage interest rates.  So how do people get good bad credit home loans (is there such a thing)?

The main way to benefit is to understand what’s involved.  The main distinction you have to understand is that it’s not low FICO scores that count the most when mortgage lenders consider your mortgage application but your credit history.

If you have good credit right now, say your middle FICO score is 700 but 9, 10 and 11 months ago you were late on your mortgage, mortgage lenders still perceive you as a risk.  And rightly so.

So what do you do if you’re in the mood for bad credit home loans?  And when advertised mortgage interest rates are as low as 4%, like they’re, you should be in the mood for a mortgage.

The first thing to do is figure out what kind of interest rate you’re likely to get.  You don’t need to know that it’s going to be 9.75%; just that it will be over 9.5% and less than 10.75%.  Something like that.  A starting point.

Ask your mortgage broker how much your interest rate goes down if your FICO score goes up, what happens if you wait six months.  You should also assume that your stay in the world of bad credit home loans is a temporary one.

Then you figure out if you can afford the highest monthly payments now or if you have to wait 6 months or more. Here, keep in mind that mortgage lenders, whether they’re giving bad credit home loans or not, let you get more mortgage than you can really afford.  So don’t go by what the mortgage broker says you can borrow, go by what you and your gut think you can afford.

A good rule of thumb: your mortgage payments, private mortgage insurance (PMI), property taxes, electric, heating, water bills and property insurance should not be more than 33% of your gross income.  Messing up here has the worst effects on bad credit home loans people, so don’t mess up.

Most people tell you that when interest rates are low you should refinance your mortgage right away.  I’m going to disagree.  The most important thing you can do is to take a look at your credit standing.  If it’s bad, you need to find ways to improve your FICO scores.  The world of bad credit home loans is made of loans with high interest rates and loans with very high interest rates.

A Bit of Effort and You Might Not Need Bad Credit Home Loans

Whether you’re dealing with bad credit home loans or not, your credit history determines if lenders will give you a mortgage loan at all; your FICO scores will determine what kind of interest rate they’re going to charge you for it.  That means that if you make arrangements with creditors to pay them and pay them on time for a few months; if you reduce the amount you owe on credit cards; if you remove errors from your credit report, your mortgage interest rate is going to be lower, perhaps so much that you’re evicted from the world of bad credit home loans.

How much lower do mortgage interest rates go, really?  That depends on your situation and the amount of time that passed since you had any lates or blemishes reported.  But often you can jump up 60-100 points in 3-6 months.  Sometimes more.  Often that means that you’ve jumped at least one level higher in credit worthiness.  It depends on lender.  If you happen to make this kind of jump just when the current mortgage rates go down you benefit the most, but don’t count on rates going down.

But jumping a level higher can get your interest rate down a couple of points.  If you started at 10%, now you might be at 8%.  2% interest on a $200,000 mortgage loan adds up to $4,000 the first year alone, a bit over $103,000 over 30 years.

Bad Credit Home Loans Conclusion

So if you’re interested in bad credit home loans because the low mortgage interest rates are telling you to get one yourself consider how fast interest rates are going to go up vs. your credit standing.  Keep in mind that the FED meets only once every 3 months to decide whether to raise,lower, or keep the rate the same. Also keep in mind that the best way to benefit from Bad Credit Home Loans is to not have one.

Hope you leave the world of bad credit home loans and never return.