When it comes to re-financing your mortgage loan, you don't need to worry about your value stage unless you are planning to apply for a primary loan. With poor credit ranking, you will work with a subprime loan provider, who isn't concerned about value levels. That indicates you don't have to carry pmi if you don't have 20% value built up. Issues With Equity And Refinancing The ultimate goal of re-financing is to conserve your funds, usually through a low cost or better caps on an arm. It is even possible to re- finance a 100% of the value of your home, but these have higher prices. Equity is not an issue, unless you want conventional prices with a primary loan. It is possible to qualify for these kinds of loans with a poor credit ranking score, you just need to have a significant value stage - over 50% in some cases. Creditors will also consider other credit ranking aspects, such as cash benefits, income stage, and overall debt load. Saving Cash With A Refi Before you re-finance your mortgage loan, make sure that you will see an actual benefits. That indicates asking for loan quotes and evaluating the interest expenses to your current mortgage loan. There are a number of helpful mortgage loan calculators online which makes this easy. To get the lowest prices, ask for an arm. Usually these kinds of loans offer the best prices for those with a poor credit ranking score. You can also lower your prices by selecting a 15 year or short term. Comparing lenders and their financing offers will go a long way toward reducing your loan expenses. You can see a benefits of thousands by finding the best deal on prices and fees. This (APR) aspects in both the cost of interest and settlement expenses. Keep Your Options Open Before signing your refi loan contract, make sure that you have the option to re-finance in the future without having to pay a large fee. That way you can preserve more income when your credit ranking rating improves. You may also be able to negotiate an automatic refi with your loan provider when your credit ranking rating reaches a certain point.