Mosby Group

If you don’t have good credit but you want to find good mortgage rates, all you have to do is a little research. You can easily find some amazing mortgage rates, even if your credit is less than stellar. Here’s how:

1.Look for special programs offered by government lenders such as Fannie Mae or Freddie Mac. In fact, Fannie Mae offers an “expanded approval” program. In this program, consumers who don’t have great credit can acquire competitive mortgages that are as much as two percent lower than private alternative financing.

2.Evaluate the loans offered by the Federal Housing Authority, or FHA. The FHA has very low credit requirements for loan qualifications. In fact, you can deposit only 3% for a loan with the FHA, including closing costs and fees. Due to government regulation, the interest rates on these loans are usually less than a quarter of a point more than with traditional lenders. Of course, you’ll need to find a HUD approved broker or a mortgage broker who works with government approved lenders.

3.Research the private market for special loans for people with little or bad credit. There are many lenders who specialize in offering loans to people who don’t have good credit. You have to be very careful when dealing with these companies. Many of them will require high down payments for qualification. Some even add on extra fees for their loans. Regardless, there are good deals to be found out there. It’s extra important to exercise care when dealing with these companies.

Here, we’re going to clarify several of the terms used in credit card offers. Much of the vocabulary used in credit card offers can be intimidating, but it doesn’t have to be. Here’s a handy guide to these words and what they mean.
APR – APR stands for Annual Percentage Rate, which represents the interest rate levied onto a balance that remains on a bill after a grace period.

Sometimes, credit card companies will set different APRs for different balances. For example, a cash advance will incur a higher APR than a standard purchase. If you’re late in making payments, your APR might increase. Fixed APRs stay at the same rate, and can only change if the creditor notifies the customer.

Variable APRs can fluctuate all the time.
Credit Limit – The amount you can charge on the card has a maximum, and this is the credit limit. Don’t go over this amount, or you might have to pay an over-the-limit fee.

Balance – This term represents the total expenses that you’ve accrued on the credit card. Add up all purchases, finance charges, and fees. Good credit cardholders will always keep this number lower than the credit limit.

Finance Charge – This charge represents the total cost of keeping a revolving balance. The balance and APR are used to calculate the finance charge.

Grace Period – The grace period is the time you are allotted to pay your balance without incurring a penalty. You should always strive to pay your bills during the grace period.

Familiarize yourself with these terms before your get a credit card. You’ll be an educated consumer, and you’ll be better equipped to establish a good line of credit.