Bad Credit First Mortgage
If you are searching for a bad credit first mortgage, that magic credit score number is 580. Having a credit score beneath that places you in the category of having bad credit.
Best Lender For Bad Credit 1st Mortgages
Unfortunately, since 2008, some lenders have experienced severe losses due to the subprime mortgage crisis.This has caused most lenders to drastically tighten the qualification process for fear of further losses. When searching for a bad credit first mortgage lender, it is important to find one that not only provides the lowest rates, but also hasn't excessively tightened its lending standards because of the subprime mortgage crisis. We like bad credit lenders that have an easy online application, and they do not charge any fees whatsoever to apply and receive an approval. Additionally, they are one of the few lenders still willing to provide bad credit 1st mortgages. This will save you a lot of time and hassle of searching through 200 lenders one at a time trying to find one that is willing to approve a first mortgage with bad credit.
Now, with mortgages for bad credit, your mortgage interest rate would be at least 7%, and maybe more. At 7%, your monthly payments would be $1,975.76 and over the 30 year pay back period you would pay $344,293.08 just in interest.
Having a good credit score would save you over $320 per month and more than $114,000.00 over the life of the loan.
By comparing these numbers it is easy to understand how it would be worth the six month wait in order to repair your credit. Applying for your first mortgage with good credit is a far wiser move, from a purely financial point of view, than applying for a bad credit first mortgage.
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