Top 10 Refinance Lenders for Borrowers with Bad Credit

Top 10 Refinance Lenders for Borrowers with Bad Credit-150x150Getting a mortgage loan with bad credit is difficult, but doable. Lenders typically regard people with bad credit as a high default risk, but they are willing to help every borrower as much as their lending requirements permit them. The same applies to refinancing, where borrowers might want to take out a new loan and possibly receive a better interest rate. Unfortunately, getting a smaller interest rate than your current mortgage loan is not very common if you have bad credit.

Refinancing is an expensive process and, even if you are able to get a loan with a lower interest rate, it might not be worth it, due to the higher overall cost of the new mortgage. Everyone’s financial situation is different, and you might very well be able to refinance with bad credit, get a lower interest rate and end up saving money. The only way in which you can find out if refinancing with bad credit is a good choice is by talking to several lenders about your situation, carefully look at what they’re offering, and decide if refinancing is to your advantage. Here is a list of the top refinance lenders for bad credit:

Top Refinance Lenders for Bad Credit Borrowers

  1. Wells Fargo. One of the largest financial services providers in the U.S., Wells Fargo, started its business in 1852. Since then, it has expanded in more than 35 countries, and currently has more than 270,000 team members. Wells Fargo specializes in mortgage, business banking, consumer and commercial finance, as well as wholesale banking.
  2.  JP Morgan Chase. The acquisitions and mergers of more than 1200 banking institution helped JP Morgan Chase become one of the largest banking institutions in the country and in the world. Some of the most important mergers were with J.P. Morgan, Chase Manhattan, First Chicago and Chemical. Chase serves millions of clients in the U.S., and offers services such as consumer banking, loans, private banking, asset management and mortgages.
  3. Flagstar Bank. Headquartered in Troy, MI, and founded in 1987, Flagstar Bank is one of the country’s top mortgage originators. They deliver award-winning services such as residential lending, retail banking and government banking.
  4. Fifth Third Bank. As of this year, Fifth Third Bank has assets of $318 billion, and is one of the largest banking institutions in the Midwest. Fifth Third Bank offers its customers four main services: consumer lending, branch banking, commercial banking and investment advising.
  5. SunTrust Bank. The Atlanta-based bank has more than 1,500 branches throughout the states of Georgia, Florida, South Carolina, North Carolina, Tennessee, Maryland, West Virginia, Virginia and the DC.  SunTrust Inc. and its subsidiaries offer a wide range of services to its retail and business clients, including banking, mortgage, asset management and securities brokerage.
  6. Nationwide Direct Mortgage. Nationwide Direct Mortgage was founded in 2009 and is one of the best-know online direct lenders in the country. This means that customers can borrow funds directly from Nationwide Direct Mortgage, without dealing with a broker or a third party agent. Nationwide Direct Mortgage provides customers an online mortgage application process, which can be tracked by applicants, who will obtain an approval or decision in less than a week.
  7. CapWest Mortgage. Founded in 1971, CapWest Mortgage is a division of Farmers Bank and Trust, a family owned bank since 1907. CapWest is approved by Freddie Mac and Fannie Mae, and is a Costco Preferred Lender. CapWest can originate loans in all 50 states, and also offers saving accounts, Certificates of Deposit and home equity lines of credit.
  8. Cole Taylor Bank. Named the sixth largest bank in Chicago by Crain’s Chicago Business, Cole Taylor Bank has assets of $5.8 billion, and can originate mortgages in 33 states. The bank was founded more than 80 years ago, and can offer a wide range of financial services, including residential mortgage lending and personal banking.
  9. First Financial Services, Inc. FFSI specializes in residential home financing and commercial lending. The company, known for their excellent rates, was founded in 1991 in North Carolina, and is also licensed in South Carolina, DC, Maryland, Virginia, Texas, Florida and Georgia.
  10. Amerisave Mortgage. Amerisave is one of the nation’s largest mortgage lenders, and offers clients all mortgage products, such as refinance loans, FHA, VA mortgages or reverse mortgages. Amerisave operates in all US states, and has more than 1,500 employees. The company guarantees an on-time closing, and they have excellent prices and offer great service.

Refinancing could be a great option for you and may save money for you in the long run, but it’s important to weigh in on the pros and cons before you make a decision to proceed. There is a high chance, especially for those borrowers with bad credit, for refinancing to cost more upfront then it will save you eventually, making it pointless for you to refinance. However, with this list of the top 10 lenders, you have the best chance of getting a better interest rate and saving money.

Mortgages for Unmarried Couples – What You Need to Know

Mortgages for Singles and Unmarried Couples - What You Need to Know-150x150A 2009 statistic shows that 8 percent of all home owners in the United States were unmarried couples. You don’t have to be married in order to purchase a home as a couple, but there are a few things that you should be aware of. Buying a home as an unmarried couple can lead to some serious problems in the future if the two parties haven’t taken the necessary steps to protect themselves. Many couples believe that they don’t need a document to prove their love, but the truth is that it’s harder, and probably more expensive, to get out of co-ownership of a home than it is to get out of a marriage.

When you and your partner are borrowing and spending tens, even hundreds of thousands of dollars, it would be a great idea to draw up a contract that would protect both your interests. Marriage is a legal contract, and without that contract, an unmarried couple will have to come up with a way of protecting themselves the same way a marriage contract does.

Writing up the Contract

Life is full of unforeseen events, so having a contract between two unmarried people who are buying a home together is a wise choice, which will prevent unpleasant issues in the future. Most arrangements in a couple’s life can be made through agreements, but buying a home together is a serious matter and both partners should protect themselves through a contract. Here are a few things that the contract between two unmarried people who buy a home together should contain:

  • Each partner’s share. An even, 50/50 split might not be a great idea if the two parties are not making equal contributions to the purchase of the home. One person may come up with the down payment, which is a large portion of the purchase price, so the contract could say that this person owns a larger part of the home. If one of the partners adds value to the home by fixing it or improving it, the contract could also give this person a larger portion of the home.
  • What happens in case of a break up. Splitting up takes its toll emotionally, but it would be even harder to go through if a home is involved. Nobody wants to think or talk about break ups when planning on buying a home together, but covering every possibility now is better than regretting it later. If the two partners have made different contributions towards the home, then they should plan on how they will get their money back in case of a break up.
  • The option of keeping the home. When a couple breaks up, one of the partners may want to keep the home, so the contract should say how much the other person will receive. A more difficult scenario is one in which both individuals want to keep the home, so the contract should address this issue as well.

Taking Out a Mortgage Loan

After writing up the contract, the unmarried couple will most likely have to take out a mortgage loan. Unfortunately, it is at the lender’s discretion if they want to give out a loan to an unmarried couple.

Both partners will have to apply individually for the mortgage loan, and some lenders will require both of them to qualify before they give out the loan. Married couples are regarded as a unit, and are satisfied with only one of the partners to qualify for the loan. Both unmarried home buyers are required to be on the loan, so one person’s credit history may jeopardize the whole process.

Another possibility is to apply for the mortgage loan in just one partner’s name. If one person’s credit history prevents the couple from taking out a loan, the other can apply for the mortgage solely in his or her name. This can prove to be very risky, because the one person who applies for the loan will have full responsibility. In case of an unforeseen event, such as a break up, that person will find themselves stuck with having to pay the mortgage alone, or risk going into foreclosure and take a large hit on their credit score.

Buying a home as an unmarried couple is possible, but you will most likely encounter more difficulties than you would if you were a married couple. The most important thing to remember is that you have to think ahead and protect yourself from any unpleasant situation, however improbable it may seem. If you decide to get a mortgage loan as a single person, because your partner can’t qualify, then keep in mind that there is always the possibility of ending up having to pay off your mortgage loan alone.