Mortgage modifications and refinances are some of the options that might be available to struggling homeowners. Another option that may be available is a remortgage. The option of an adverse credit remortgage could have some advantages for those who have poor credit. This article looks at the benefits of an adverse remortgage.
Mortgage Refinance or an Adverse Credit Remortgage
Generally when a home is refinanced, it is accomplished using the same lender. As an example, under the Obama administration's Home Affordable Refinance Program, or HARP for short, the homeowner refinances his home with the same mortgage service provider. Other than that distinction, a refinance and a remortgage are virtually one in the same.
Consumers with poor credit ratings may be able to use a remortgage as a means to improve their credit ratings. Since a remortgage is essentially a new home loan with a new lender, the old home loan is recorded as paid in full. If there’s a history of late mortgage payments, the credit should be erased since it’s recorded as paid in full.
