Bad Credit Comeback Loans

Now there's a new product in town for those of you who are worried that credit issues will only qualify you for a bad credit mortgage. It is called a credit comeback loan and it is designed to help you purchase a home or refinance an existing one without resorting to a bad credit loan with exorbitant interest rates.

How Does a Credit Comeback Mortgage Loan Work?

Borrowers who suffer from bad credit are often put into bad credit home loans with high interest rates. A Credit Comeback Loan allows a borrower to qualify for a 30 or 40 year fixed rate loan or an adjustable arm (including interest only options) and drops the borrower's interest rate by .375% per year (for up to 4 years) if the borrower makes her mortgage payment on time. This can mean a reduction of up to 1.5% on the borrower's interest rate! After the four year period is over, the borrower now has a fixed rate for the life of his loan and avoids the need to refinance out of a higher interest rate bad credit mortgage.

When Should I Look into a Credit Comeback Loan vs. a Bad Credit Mortgage?

Don't settle for a bad credit mortgage, if you are looking at a new home purchase or a refinance and the rate you are quoted is over 7.5%, talk to your lender about a credit comeback loan. Credit comeback loans will allow borrowers whose fico scores are as low as 500 to qualify for a home mortgage loan. Don't settle for the exorbitant rates of a bad credit mortgage; realize your dreams, while improving your credit, with a credit comeback loan.

Protect Yourself Against Identity Theft to Avoid A Bad Credit Home Loan

The key to a good mortgage loan and a good interest rate is good credit! Whether you are looking at a new home purchase, a cash-out refinance of an existing mortgage, a home equity loan, or home equity line of credit, your ability to qualify for a good mortgage loan versus a bad credit mortgage loan is FICO score dependent.

While paying your bills on time, keeping your available credit low in relation to your available balance, and developing a long credit history helps to ensure higher credit scores, protecting yourself against identity theft is one of the best ways to keep your credit scores high and to avoid a bad credit home loan.

Take These Steps to Protect Your Identity and Avoid Bad Credit

* Check your credit report at least once a year. If you don't have a good lender who you work with, go to an online service such as www.annualcreditreport.com and obtain a free credit report. Your credit report will show all of your credit activity and is a good place to see if someone else is enjoying your identity.

* Secure personal information. This means shredding mail, statements, and receipts that contain personal information and account numbers. Keep bank, and other financial documents, in a secure place.

* Do not give out personal information over the phone, and be very cautious when responding to promotions.

* Do not carry your social security card with you and minimize the number of credit cards you carry.

* Have a mailbox that you can lock. If you are planning a vacation, have your mail held at the post office or picked up by a friend.

Identity theft is a billion dollar a year industry. Don’t become a victim. Protect your identity while defending yourself from bad credit and a bad credit home loan.