A late mortgage payment is absolute worst thing that can happen to a homeowner. It can happen to anyone that owns a home and it is devastating to your credit score and ability to refinance your mortgage. Although there are options that you can use to obtain a mortgage refinance loan with late mortgage payment history there are some things you should be aware of about these types of loans.
Sub Prime Loans: Anyone looking to refinance their home with late payments of 30 days or more is going to have to shop for subprime loans. These loans do grant the ability to get a troubled borrower financing they often come with higher rates and fees then a standard conforming or FHA loan has. You will need to secure this type of loan from a mortgage broker as banks and credit unions do not offer subprime financing.
How Late Were You: Typically if you have only one thirty day late payment getting a refinance loan with a subprime lender will be very straight forward and similar to a standard refinance. However if you have numerous 30 day late payments or even a sixty or ninety day late payments the amount of equity you can borrow from your home is greatly diminished and the number of lenders who will lend to you is greatly diminished as well.
High Interest Rates: When you have late payments recorded on your mortgage history it will greatly effect the interest rate in which you can receive. Be prepared for interest rates in the double digits when you start to shop for sub prime loans. As high as they are you will just have to live with the higher rates and payments for at least 12 months. 12 months after the late payment you we be eligible for FHA financing and the low rate it offers
Knowing your options and educating yourself on your situation is critical when you are considering a mortgage refinance loan with late mortgage payments working against you. But by gathering the right information and utilizing the correct lenders you can rest assured you will be able to get yourself back on track.