Expert Mortgage Brokers | St Catharines Equity Loan with bad credit
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St Catharines Equity Loan with bad credit

Securing Loans with Bad Credit

Many people are struggling with debt and bad credit everywhere and St. Catharines, Ontario is not an exception. Bills can pile up making it difficult to get back on your feet financially. But that should not deter anyone facing such problems as there are options available to help people repair their damaged credit. One such option is Home Equity Loans for people with bad credit or here simply referred to as St Catharines Equity Loan with bad credit. This seems like a reasonable choice especially to those with bad credit scores.

Types of Home Equity Loans

A St Catharines Equity Loan with bad credit comes in different forms. These include: Home Equity Line of Credit, Home Equity Loan, and complete refinance. These are discussed in more detail below.

  • Home Equity Line of Credit
    This kind of mortgage is referred to as HELOC. A line of credit refers to a set amount limit beyond which you can’t be allowed to borrow. So when making the drawings, the borrower has a fixed limit to which he or she is allowed to borrow. This line of credit is set by the lender which in most cases is a bank or credit union. Interest rates are applied to the exact amount you borrow, not on the line of credit limit. It is, however, important to note that interest rates can fluctuate. If interest rates do go up, then one option is to convert the debt into a fixed rate loan.
  • Home Equity Loan
    This kind of mortgage is usually a fixed rate loan secured against the property. The borrower can apply for an amount of money and then pay it back over time (the amortization period). This particular kind of loan would be a second or third mortgage and may come in handy when you need to finance expenses over a period of time, consolidate debt or finance a home renovation project. It could also come in handy when you need funds to pay things like property tax bills or mortgage arrears.

Refinance

Sometimes it is better to completely refinance your mortgage or loans especially if you locked into a higher rate before the mortgage rates went down. Your mortgage broker will look at the numbers to determine whether refinance into a single new first mortggae is the best option for you. Typically, depending on the property location and crdit worthiness first mortgages are available up to 80 percent of the home’s value. If you need more than 80 percent, then some lenders, (often private lenders) will offer a second mortgage over 80 percent of the home’s value. These days, however, no many lenders are willing to finance 100 percent of your home’s value.

How to Find the Best Home Equity Loans

Finding the best St Catharines equity loan with bad credit is easy and can save you thousands of dollars if you use a professional mortgage broker. He or she will follow these simple strategies for you:
i. Shop around for different loans to help you make a wise and informed decision
ii. Review your credit score and ratings and, if necessary, help you improve your credit so that you are attractive to lenders.
iii. Compare offers that best meet your needs.