Best Subprime Mortgage Rate
Finding the best subprime mortgage rate can be difficult. Below we have a closer look at subprime mortgage rates.
Subprime Mortgage Rate – Subprime mortgage lending
Subprime mortgage lending has grown tremendously in the last fifteen years and now makes up a significant fraction of the overall mortgage market. A subprime mortgage loan is a mortgage that is specifically designed for people who are denied prime or standard mortgages by traditional lenders. As the subprime mortgage rate can vary from lender to lender it is important to understand the differences and how to find the best subprime mortgage rate to suit your individual situation.
Subprime Mortgage Rate – Research
You will need to do some research into subprime mortgage rates so that you can see what different rates are on the market and which of the products on offer may be best suited to you. You can do this online, or by reading the personal finance section of the newspapers. For the best results though, you should consider contacting a specialist subprime mortgage loan broker, who will have a wide knowledge of the market and be able to advise you on which mortgage products would be best for you and which subprime mortgage rate is realistic.
Subprime Mortgage Rate – Specialist Lenders
If you having problems getting a mortgage from traditional mortgage brokers then you may be well advised to apply for a mortgage with a specialist subprime mortgage lender. Specialist subprime mortgage lenders may offer you a lower subprime mortgage rate and lower fees. Even if your credit history shows record of a bankruptcy you will find that the specialist subprime mortgage lenders will offer you a better subprime mortgage rate and so it advisable to go to them first. The subprime mortgage rate with a specialist lender will not be all that different to a prime mortgage loan as it will have regular monthly re-payment requirements, early repayment restrictions and a down payment. The kind of mortgage you will get with hard money lenders* often requires a much higher down payment and many restrictive terms and conditions.
Subprime Mortgage Rate – Refinancing Option
One of the many advantages that you will experience with specialist subprime mortgage lenders over a hard money lender* involves refinancing. After three years of regular payments you may find that many subprime lenders will automatically offer refinancing so you can reduce your subprime mortgage rate or tap into equity. Hard money lenders*, on the other hand, are more driven by high profits, so they will only deal with high mortgage interest rates and terms profitable to them.
* Hard money lenders are lending companies offering a specialised type of estate backed loan. Hard money lenders provide short-term loans (also called a bridge loan) that provide funding based on the value of a property that has been collateralised for the loan. Hard money lenders typically have much higher interest rates than banks because they fund deals that do not conform to bank standards.