Has your credit rating dropped? Whatever the reason: Bankruptcy, Foreclosure, Repossessions, Late Mortgage Payments, Late Credit Card Payments, Charge Offs, or all of the above, you may be able to qualify for a mortgage. Depending on your credit history and equity in your home (if refinancing), it is possible to find a loan that's right for you.
ONE MORTGAGE INSTEAD OF TWO
You can use the equity in your home to consolidate your current mortgages into one single mortgage payment rather than a first mortgage and an equity loan. You might want to take a portion of the money you'll be saving each month and invest it either into your current mortgage (pay it off faster) or establish a savings fund.
REFINANCE TO CONSOLIDATE DEBT
You can consolidate debts by refinancing your home as long as there is sufficient equity. Perhaps you would like to reduce the term of your mortgage from 30 years to 15 or 20 years. You may be able to reduce your monthly payments dramatically with various mortgage programs.
Debt consolidation can provide you with a practical financial plan if you already own a home. In contrast, credit cards charge you daily compounded interest and can range from 9% to 24% so you can actually be paying up to three times more interest on credit cards. Start saving money instantly by refinancing and consolidating all of your debts into one low payment. Again, you can put the savings toward paying down your mortgage.
Don't rush into buying a home. Consider how will you pay for it. While it's true that renting is a waste of money that can be applied to owing a home, getting in too deep too soon is not a good idea. You must qualify with income and credit, and you must be able to afford monthly mortgage payments. For info from HUD on buying a home, click here.