If you have poor credit and are looking to refinance your home, you should know that it is not impossible. There are many lenders such as specialty bad credit mortgage brokers and bad credit mortgage loans that you could qualify for.
Bad Credit Mortgage Refinance
Mortgage companies are hesitant to give mortgages or refinance loans for people with bad credit. To assist with this situation, there are bad credit mortgage lenders and bad credit mortgage brokers.
Bad Credit Specialists
The bad credit mortgage lender is there to help someone get a borrower’s loan approved even if they have poor credit. Unfortunately, the loan you get will carry a higher interest rate and have higher closing fees then someone with better credit. Often these bad credit home mortgage loans will carry a pre-payment penalty that will last for anywhere from 6 months to 3 years and mean huge sums of interest for at least 6 months before you can pay the loan off.
A bad credit mortgage broker is a middle man, much like a normal mortgage broker. This person will be able to find the best bad credit mortgage lender to facilitate refinancing or purchasing a home.
Bad credit mortgage refinancing on a bad credit mortgage loan can still save the borrower hundreds, if not thousands, of dollars in the long run and term of a loan. This is money that during financially trying times can virtually give families enough money to live life better than before.
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Monday, July 20, 2009
Monday, July 6, 2009
Bonds bad credit
The bad credit bonds, also called as bad credit surety bonds or high-risk bonds are the bonds that are underwritten by the carriers that are ready to take higher risks by issuing bonds.It is quite obvious that these bonds are issued at high interest rates as compared to the standard bonds.These types of bad credit bonds are quite famous in United States and most of the carriers that provide these bad credit surety bonds charge interest rates from 3% to 20%. The rate depends upon the type of bond applied by a person or a company and these bonds are issued for commercial purposes only.
PRESENT TRENDS
So far the trend of the bad credit surety bonds are concerned, it is of course growing and as a result, interest rates are dropping down. There are many sources like JW Surety bonds in United States that provide bad credit surety bonds at quite low interest rates.Since each of the carriers has some reservations about the applicants, most of the surety bond companies have arrangements with multiple bonding companies, so that the requirement of a person can be fulfilled. The eligibility is not a problem and all the persons can qualify for the high risk or bad credit bond programs. Now the question arises who are the persons that can go for the bad credit bond programs, that is, do not qualify under the standard bond programs. There are many categories of persons that go for bad credit bond programs.First, those persons that have filed for bankruptcy due to any reason are not eligible for the standard bond application and thus, have to apply for the bad credit bond program. Bankruptcy creates negative image of a person and the bonding company shall never allow a person to get bond at lower interest rates with bankruptcy application. Second, all those persons that have low credit score are not able to get the bonds at standard interest rates and thus, have to apply for the bad credit bond programs. Normally, all those persons that have credit score less than 650 are considered as persons with bad credit or low scores and have to apply for the bad credit bond programs. The bad credit score is resultant of incapability of a person to repay the loan taken as per the agreed schedule. Even the persons that have no credit history, that is, persons that have not taken loan from any financial institution earlier, are forced to go for the bad credit bond programs.This is because the carrier is not aware of past performance regarding the repayment etc and charge high interest rates on bonds issued to such persons. Persons that have tax liens marked in their favor due to non payment of taxes also face great difficulty in getting bonds issued at the standard interest rates and have to go for bad credit bond programs. Apart from the above, there are some other reasons also for which a person has to go for the bad credit bond program. These reasons include civil judgments, unpaid collections, late child support, late alimony payments etc. Thus, reasons are many. A person can easily get the online quotes from different carriers online. These quotes are provided immediately and in most of the cases, the approval is provided to a person. However, there are some circumstances in which the application is reviewed by the underwriter before giving approval and thus, it can be said that making an application for the bad credit bond program is not a guarantee for approval. A person may be required to provide some collateral for getting qualified for the bad credit bonds, which depend upon the merits and demerits of individual case.
BAD CREDIT BOND CARRIERS
So far the carriers of the bad credit bond programs is concerned, there are many companies that provide the bad credit bond programs. Many of these were even started 40 years ago. For example, Bondsexpress.com, a leading bond carrier in United States, was started four decades ago as a surety bond and insurance provider and now, it provides services at the national level.
There are some characteristics that must be looked for into a bond underwriter, so that a person does not face any difficulty in getting bad credit bond. First, the underwriter must be able to provide timely approvals to the bond applications. Underwriters that hang up applications for weeks together should be avoided. Second, the application process must be simple. After the surety bond is approved, the same must be delivered in the shortest possible time.
Most of the bond companies are now allowing persons to apply online for the bad credit bonds. Fast approvals and online quotes have also helped in the growth of bond companies. Once a person has applied for a surety bond and has been approved of the same, he can easily check his status by logging on to the web site.
It also requires to be understood here that the way in which the bond companies operate is quite different from the way in which the insurance companies operate. The basic difference between the two is that the insurance companies charge premiums as per the assumptions of claims made on the policies issued by them whereas the bond companies work on the basis of 0% loss ratio. Does this mean that a person with credit score less than 650 cannot go for bond. No, he can but he has to pay high cost for it in the form of interest rates.The bad credit bond program enables a person, business unit etc to continue working smoothly by paying high interest rates. A person can also be required to pay small cash collateral apart from higher interest rates for getting the bonds.
Almost all the bad credit bonds that are underwritten by various bond companies pertains to commercial bonds only and thus, it is really very difficult to get performance bonds or contract bonds, once bad credit is created in the favor of a person.
Source
PRESENT TRENDS
So far the trend of the bad credit surety bonds are concerned, it is of course growing and as a result, interest rates are dropping down. There are many sources like JW Surety bonds in United States that provide bad credit surety bonds at quite low interest rates.Since each of the carriers has some reservations about the applicants, most of the surety bond companies have arrangements with multiple bonding companies, so that the requirement of a person can be fulfilled. The eligibility is not a problem and all the persons can qualify for the high risk or bad credit bond programs. Now the question arises who are the persons that can go for the bad credit bond programs, that is, do not qualify under the standard bond programs. There are many categories of persons that go for bad credit bond programs.First, those persons that have filed for bankruptcy due to any reason are not eligible for the standard bond application and thus, have to apply for the bad credit bond program. Bankruptcy creates negative image of a person and the bonding company shall never allow a person to get bond at lower interest rates with bankruptcy application. Second, all those persons that have low credit score are not able to get the bonds at standard interest rates and thus, have to apply for the bad credit bond programs. Normally, all those persons that have credit score less than 650 are considered as persons with bad credit or low scores and have to apply for the bad credit bond programs. The bad credit score is resultant of incapability of a person to repay the loan taken as per the agreed schedule. Even the persons that have no credit history, that is, persons that have not taken loan from any financial institution earlier, are forced to go for the bad credit bond programs.This is because the carrier is not aware of past performance regarding the repayment etc and charge high interest rates on bonds issued to such persons. Persons that have tax liens marked in their favor due to non payment of taxes also face great difficulty in getting bonds issued at the standard interest rates and have to go for bad credit bond programs. Apart from the above, there are some other reasons also for which a person has to go for the bad credit bond program. These reasons include civil judgments, unpaid collections, late child support, late alimony payments etc. Thus, reasons are many. A person can easily get the online quotes from different carriers online. These quotes are provided immediately and in most of the cases, the approval is provided to a person. However, there are some circumstances in which the application is reviewed by the underwriter before giving approval and thus, it can be said that making an application for the bad credit bond program is not a guarantee for approval. A person may be required to provide some collateral for getting qualified for the bad credit bonds, which depend upon the merits and demerits of individual case.
BAD CREDIT BOND CARRIERS
So far the carriers of the bad credit bond programs is concerned, there are many companies that provide the bad credit bond programs. Many of these were even started 40 years ago. For example, Bondsexpress.com, a leading bond carrier in United States, was started four decades ago as a surety bond and insurance provider and now, it provides services at the national level.
There are some characteristics that must be looked for into a bond underwriter, so that a person does not face any difficulty in getting bad credit bond. First, the underwriter must be able to provide timely approvals to the bond applications. Underwriters that hang up applications for weeks together should be avoided. Second, the application process must be simple. After the surety bond is approved, the same must be delivered in the shortest possible time.
Most of the bond companies are now allowing persons to apply online for the bad credit bonds. Fast approvals and online quotes have also helped in the growth of bond companies. Once a person has applied for a surety bond and has been approved of the same, he can easily check his status by logging on to the web site.
It also requires to be understood here that the way in which the bond companies operate is quite different from the way in which the insurance companies operate. The basic difference between the two is that the insurance companies charge premiums as per the assumptions of claims made on the policies issued by them whereas the bond companies work on the basis of 0% loss ratio. Does this mean that a person with credit score less than 650 cannot go for bond. No, he can but he has to pay high cost for it in the form of interest rates.The bad credit bond program enables a person, business unit etc to continue working smoothly by paying high interest rates. A person can also be required to pay small cash collateral apart from higher interest rates for getting the bonds.
Almost all the bad credit bonds that are underwritten by various bond companies pertains to commercial bonds only and thus, it is really very difficult to get performance bonds or contract bonds, once bad credit is created in the favor of a person.
Source
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