How Mortgage Companies Take Advantage of Client’s Poor Credit History
Are you having poor credit history? Do you wish to avail loan for purchasing a house despite poor credit history? Thankfully, the changing times have changed the perception of mortgage companies providing loans to people looking forward to buying a house. However, the mortgage company would not be providing same rate of interest to people with poor credit score as provided to people having good credit scores. Sun West Mortgage delves into the reason for mortgage companies offering higher rate of interest to people with poor credit score.
It would be bad news for money borrowers that several mortgage companies do not hesitate to making the most of the precarious situation of clients having poor credit score. The mortgage companies look forward to charging higher interest rates as compared to people having good credit scores. It implies more business in poor credit score mortgage arena. Moreover, people with poor credit score would not be required to make any kind of sown payment, which is usually at least 20% of the total amount of the house. It would be imperative for people with good credit history to pay down payment to show their earnestness for availing mortgage loan. It would be great for borrowers having poor credit score, as it would make repayment relatively easier. Poor credit borrowers have also been obliged to pay mortgage insurance. It would be pertinent that interest rates would be slightly higher.
Even today, with several new laws being passed in the mortgage arena, the distinction between people having good and poor credit has been blurring. A majority of mortgage companies along with Sun West Mortgage have been known to charge lower interest rates as in the days of old. With the introduction of new economic term non-status, inclusive of self-employed people who may not be able to provide their accountability, most people would be subtracted from poor credit category. The rate of interest for non-status people would be relatively similar to that of people having good credit.