Bad Credit Loans - Part One -

You’re looking for a loan, but your less than perfect credit rating won’t permit you to get any of those lower rates.

You might be surprised to learn that there are alternatives. In fact, there is a whole specialized segment of the mortgage industry that only lends to people who, for many reasons, find themselves with a sub-prime credit rating.

In mortgage industry lingo, it’s called “B paper” and offers include 2/28 and 3/27 loans. The first number refers to the actual number of years that the initial interest rate is fixed for.

After that time, the rate changes on a predetermined schedule, typically every 6 months or 12 months, for the remainder of the loan. The exact amount of this rate change, called an Adjustment, is figured by a formula based on the United States bond market.

This is typically the yield on the 1 year U.S. Treasury Bill. The 2/28 is typically a good place to start for different reasons. These types of loans usually have a two-year stipulation meaning you can’t refinance for a minimum of two years.

Click Here To Read Bad Credit Loans Part Two