Baltimore, MD (PRWEB) April 17, 2007
The recent collapse in the subprime mortgage industry has convinced many lenders to pull back on subprime lending practices and tighten lending requirements. In recent history, almost anyone could get a mortgage loan, even those with critically low credit scores below 500 or 600. Lenders assumed homeowners would accrue equity and therefore refinance their mortgages in the future.
"Homeowners with subprime mortgages, especially adjustable rate mortgages expiring within the next 12 months must refinance immediately," said Delia Galley, President of Pioneerlenders.com. "Foreclosure can be avoided, if homeowners are proactive in seeking other desirable loan products such as 30 year fixed rate mortgages."
Pioneerlenders.com offers the following tips for homeowners, who need to refinance their existing mortgage loans:
1. Understand your existing mortgage contract. What type of loan do you have? When does the loan expire or adjust? Can you refinance without a prepayment penalty?
2. Don't wait til the last minute. Putting off the inevitable means doubling or tripling your mortgage loan. Some homeowners see their mortgages go from $1,000 to $2,000 in one day. No one can sustain such a drastic increase in their payments.
3. Recognize that interest rates are still low and subprime borrowers can still find decent refinance rates. Pioneerlenders.com offers free, no obligation refinance quotes.
4. Don't panic. Take one step at a time. First shop for loan quotes. Select the lender, whose loan terms meets your needs. Ensure that you clearly understand the terms of your loan: type of loan, points, lender fees, prepayment penalties, etc.
Foreclosure or bankruptcy must be avoided because they have a lasting effect on one's credit history. Another option for homeowners, who feel they can no longer carry a mortgage is to simply sell their homes. As with all financial decisions, homeowners must make an informed decision based on their personal situation.
*About Pioneer Lenders.
Pioneerlenders.com is a customer centric marketplace offering a diversified array of loan products. Borrowers seeking low interest rates are offered free, no obligation mortgage quotes. Consumers can visit the website at http://www.pioneerlenders.com to fill out a short and simple form to be matched to five leading lenders. Loan products offered include cash out refinance loans, home equity loans, home equity lines of credit and debt consolidation loans. Pioneer Lenders services loan requests in all 50 states.