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					Title:
Bad Credit Home Equity Loan Rates


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399


Summary:
Bad credit home loan are home equity loans issued against low credit rating. Credit companies keep a track
on people’s credit scores by following their credit payments. Missing payments or late payments can cause
low credit ratings. Credit ratings are lowest when the individual has declared bankruptcy. The rates for bad
credit home equity loans keep fluctuating based on the state of the national economy.



Keywords:
Bad Credit Home Equity Loans, Bad Credit Home Equity Loan Rates, Bad Credit Home Equity Loan
Refinancing, Guaranteed Bad Credit Home Equity Loans



Article Body:
Bad credit home loan are home equity loans issued against low credit rating. Credit companies keep a track
on people’s credit scores by following their credit payments. Missing payments or late payments can cause
low credit ratings. Credit ratings are lowest when the individual has declared bankruptcy. The rates for bad
credit home equity loans keep fluctuating based on the state of the national economy.


Some agencies offer loans even when the applicant is bankrupt. The process is simple and one can receive
the funds within two to three days. For instance, some loans allow for a $500 loan per day. In this case, the
borrower must be able to pay back to the lender $1000 per month. The loan will only be sanctioned for a
citizen of the USA. He or she should have an active checking account. He or she should also be currently
employed and be able to prove steady income.


There are different factors affecting bad credit home equity loans apart from credit ratings. The first factor is
the debt to income ratio of the individual. When one applies for a loan, debt to income ratio is calculated
based on monthly obligations and income. The rate offered is proportional to the debt income ratio. Lenders
often refer to a formula called LTV -- loan to value ratio. More equity or money down decreases the risks
involved with lending. Therefore, a lower LTV may result in a lower rate of interest.


The type of property you are buying or refinancing also affects bad credit loans.


Common types of property are single-family homes, condominiums, manufactured homes and multi-family
homes. Loans may be available for many different property types but the interest rate is lower for a single-
family home than for a multi-family home. The less risky the property or the easier it is to sell off, the better
the rate of interest. The occupancy type and the amount of loan also affects the rates.


Interest rates vary across the nation. Different states have different regulations and requirements that result
in varying business costs. An aspiring homeowner who is unfortunate enough to have a low credit rating
sees hope in achieving his dreams through a bad credit home equity loan. It is essential that he study the
rates applicable on bad credit home equity loans to ensure that he gets the best terms for his mortgage in the
long run.




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