In applying for a bad credit mortgage, ask your lender about costs involved in obtaining loan, length and interest rate of your loan, and ability to refinance at a lower rate down road. Mortgages for people with poor credit are available through many lenders and with a variety of terms and conditions. Bad credit home loans can include a 2/28 home loan or a 3/27 home loan. The interest rate for a 2/28 loan is fixed for two years and fixed for three years in a 3/27 loan. This means that there will be a prepayment penalty during first two or three years of mortgage and that home loan cannot be refinanced prior to that time.

Sub prime lenders will work with any credit score and income level to help you finance home of your dreams at lowest possible cost. Contact several lenders that specialize in mortgages for those with bad credit. There are numerous variations in interest rates and terms offered by these types of lenders. Shopping around for a mortgage lender can save you thousands over length of your home loan, even if your credit is less than perfect.

Bad credit will not prevent you from applying for a home equity loan. You could even be approved for a home equity loan up to 125% of your home's value. Begin rebuilding your credit and get extra cash you need to put you on path to financial freedom. It is even possible for you to lower amount of your monthly mortgage payments with a home equity loan. You can have extra cash in your wallet each month to help you repair your credit history. A home equity loan, even if you have bad credit, can be solution stress and pressure that comes from past due bills and endless calls from creditors.