So many of us feel that having bad credit will make a re-mortgage impossible or very close to impossible to say the least. With so many of the traditional lending institutions not even wanting to speak to us, slamming the proverbial door in our faces before we can open our mouth to speak our case, very few options seem to be left. But there is hope- and yes, a bad credit re-mortgage is 100% possible! You just need to look beyond the banks, a ways past the non-traditional lenders.

Believe me, potential creditors don’t care why your credit is poor, just that it is - so you don’t feel the need to explain. Some of us have gone through the unpleasantness of a divorce, creating a drop in finances and related credit score. Others lost their employment and have fallen behind on their bills. Still others had to file bankruptcy for one reason or another. Whatever your situation, you just need to find a quality, sub-prime mortgage lender!

Sub-prime mortgage lenders specialize in people like us, both for refinancing a current mortgage (also known as a re-mortgage) or buying a new home. Of course, there are a few things you should be aware of before you take advantage of one of these loans.

First, you should know that the lower your credit score, the more your re-mortgage is going to cost. The current industry average (sub-prime/bad credit re-mortgage industry) is 4%, but can go as high at 7%. This means that you, as a bad credit home loan borrower, are typically charged an average of 4% more than a borrower with good credit that’s getting into the same general loan program. This percentage can be in charged in a bunch of different ways, including interest, points, and a wide variety of “bad credit" fees.

Don’t think that the types of mortgages that you can qualify for are extremely limited, because you couldn’t be more wrong, they’re just going to cost you a bit more. You can even apply for a mortgage that allows you to take out extra money to pay off high-interest credit card bills and auto loans, if that’s what you need to help your financial situation!

Of course, your interest rate will also reflect your LTV, or Loan to Value ratio. This number stems from the amount your home is worth and compared to the amount of the loaned mortgage amount. The higher the loan amount to your home’s worth, the more you will pay each month. This is true of all mortgages, no matter what you credit score may be.

Before signing any re-mortgage agreement, be sure to shop around to get the best deal. This will also keep any predators at bay from trying to take advantage of you as you re-mortgage your current home loan!