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Fees and terms can be better during off-season of fall and winter for borrowers. When there is more competition for fewer loans, mortgage lenders will lower their fees. If you do secure a mortgage during spring or summer, double-check fees to make sure they are not inflated.
Down Payments Wanted
A down payment is often necessary for a person with a bad credit record. The larger your down payment, easier it is for you to secure a loan. You can also avoid PMI by putting down at least 20% of home’s value.
Fees Add Up
Interest rates are an easy way to look at a loan, but you should also consider fees involved in a sub-prime mortgage. Some fees are to be expected to process loan, but others can be excessive. When you get a mortgage offer, be sure to add up fees from each financing package and compare those with interest rates.
To view our list of recommended bad credit or subprime mortgage lenders online, visit this page: Recommended Subprime Mortgage Lenders Online.
Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and the latest news about various types of loans.