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By obtaining a low interest rate second mortgage refinance, you could inevitably lower your monthly mortgage payments. But getting approved for one could be a challenging task since, most of the lenders that provide these have stringent eligibility requirements these days. Thereby, prior to embarking upon the entire mortgage refinancing process it could be important for a borrower to thoroughly understand what mortgage servicers are basically looking for to grant you an approval for a home refinance loan. Remember, most of the lenders have nice hard look at your current levels of monthly income, value of property assets, existing credit scores, debts owed, etc.

1. Criteria for suitable home refinance loans
   • Most of the mortgage servicers consider stable as well as regular monthly income and steady source of employment to be proof for repaying the refinance loan successfully.
   • Existing credit status can directly influence mortgage rates offered on new refinance home loans. Therefore, you could be in a much better position to obtain lower interest rates if your credit reputation has improved ever since you got your original mortgage loan.
   • If the loan-to-value (LTV) is not in agreement with the prescribed guidelines, lenders might either not approve you or provide less favorable home refinancing terms.

If you are considering applying for home refinance with bad credit, you need to satisfy the below mentioned criteria.

2. The Home Affordable Refinance Program (HARP)

President Obama’s making home affordable refinance plan could be another viable option for borrowers who are unable to qualify for conventional mortgage refinance loans. The HARP, as it is popularly known, has been basically designed to assist struggling homeowners whose home values have declined but are current in paying their existing monthly mortgage installments. The eligibility requirements for the HARP refinance loans are as follows:

• Home to be refinanced needs to be primary residence of the applicant.
• Current mortgage should be owned or insured by Freddie Mac or Fannie Mae.
• Applicant should be regular in paying monthly mortgage payments for last 12 months.
• Need to demonstrate ability to pay new monthly mortgage installments.
• Show that by refinancing existing home mortgage, affordability can be sustained.

To take advantage of low mortgage refinance rates, it could be vital for you to seek expert help especially if your credit history is bad. Today you can find many companies that guide borrowers in exploring their home refinancing options and choosing one that best fits their financial needs and requirements. However, it could be important for you to choose a company which is reliable as well as reputable.

To get more useful information on your affordable first or refinance second mortgage options, it is hereby recommended to utilize the professional services offered by reputed online service providers like USLoanz.