Bad Credit Mortgage Refinance - Consolidate Debts and Improve Credit

Homeowners apply for a mortgage refinance for two primary purposes: to lower interest rate and debt consolidation. If choosing the second option, a cash-out refinance will provide the money needed.

With a cash-out refinance option, homeowners may refinance their mortgage, while borrowing extra money from their equity. The borrowed money is wrapped into the new mortgage amount, which increases the principle balance. At closing, the homeowner receives a lump sum of money for paying off debts.

Benefits of Consolidating Debts with a Refinance

If attempting to payoff credit cards and other debts, it can take several years. Because of high finance fees, it may also take a long time for balances to reduce. In many cases, a lump sum is necessary for quick repayment.

The money received from the refinancing could be used to eliminate credit card balances, payoff auto loans, reduce student loans, and so forth. Once consumer debts are paid in full, homeowners will also notice a credit improvement. Of course, simply paying off debts will not result in an immediate credit improvement, especially if the repayment followed a bad credit history. Nonetheless, if the homeowner adopts new credit habits, their credit score will gradually improve.

Finding a Bad Credit Refinance Lender

When shopping for a refinance lender, contact your existing mortgage lender and request a quote. Depending on the level of bad credit, current mortgage lender may not approve your request. Nevertheless, sub prime lenders are eager to assist. By means of a mortgage broker request information and quotes from sub prime lenders. Compare and contrast quotes, and then choose the lender offering the lowest rate. Here is a recommended Bad Credit Mortgage Refinance Lender online. It's important to use a reputable lender online to make sure your personal information is secure.

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Coming up Short for Fall's Tuition Bill? Sallie Mae OffersLast-Minute Options to Help Families Pay for College

RESTON, Va., Aug 03, 2009 (BUSINESS WIRE) ----In these economic times, families of college students might find themselves with less money in their pockets to pay this fall's college tuition. Sallie Mae, the nation's leading saving, planning and paying for education company, offers several affordable options available in time to meet the cost of higher education.

"When times are tight, a college degree continues to pay long-lasting dividends," said Albert L. Lord, vice chairman and CEO, Sallie Mae. "With unemployment for college graduates at half that of the population at large, a college degree remains one of the best investments a family can make. The good news is that there is a variety of options to help cover the cost."

Sallie Mae's free Education Investment Planner, available at www.SallieMae.com/invest, can help college-bound students and their families compare the costs of 5,500 colleges and universities, build a customized plan to pay for college, and explore various funding options.

After maximizing scholarships, grants and federal student loans, Sallie Mae advises families to consider these solutions to a last-minute college financing gap:

-- Tuition Payment Plans

Tuition payment plans are available at hundreds of college campuses and offer families an alternative to making a large, lump-sum payment due at the start of the term. Sallie Mae's TuitionPay is an interest-free, monthly installment option that saves families money by reducing the amount they need to borrow and allows families to more easily use their current income for education expenses. Visit www.SallieMae.com/tuitionpay for more information.

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Bulk Of TALF Eligible Deals Sold Ahead Of Loan Deadline

Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- The bulk of the deals that emerged ahead of a loan application deadline for a Federal Reserve program have sold, according to people familiar with the bonds.

Issuers including General Electric Co. (GE), SLM Corp. (SLM), Wheels Inc. and First National Bank of Omaha sold newly created bonds backed by loans for education, credit card debt and fleet leases.

The Fed's Term Asset-Backed Securities Loan Facility, or TALF, launched in March, offers investors loans at attractive rates to buy newly created asset- backed securities. Over $8 billion in deals surfaced ahead of the sixth loan deadline on Thursday. Last month, that figure was a little over $12 billion and in June, it was $16.4 billion.

The slight dip can be attributed to the traditional summer lull, said Jim Harrington, a senior portfolio manager at Ryan Labs Asset Management in New York.

Most of the consumer loan-backed deals sold this year were eligible for TALF, which helped revitalize the securitization market and improved the availability of credit for consumers.

Initially, the program was viewed as being user-unfriendly but the Fed's cheap loans drew investors who overcame lengthy documentation and other implementation issues to participate. Now, many hope it is extended past its scheduled expiration at the end of this year.

The Fed has recently also begun to offer attractive financing for new and existing commercial mortgage-backed loans in an effort to revive the commercial real estate sector. The next loan application deadline for the commercial- property portion is Aug. 20.

"Many of the TALF funds are re-allocating their dollars to CMBS," said Dan Nigro, senior portfolio manager at Dynamic Credit Partners in New York.

That said, no new CMBS deals have emerged in more than a year, though some are in the works.

On Wednesday, General Electric sold two deals eligible for TALF financing: a $ 1.75 billion credit card loan-backed deal dubbed GEMNT 2009-2, was originally $ 1.25 billion. The single-tranche deal, with a duration of 2.93 years, sold at 155 basis points over a short-term benchmark. Joint leads on the bond are RBS and Credit Suisse.

The other deal, a $500 million deal, backed by dealer floorplans and dubbed GE Dealer Floorplan Master Note Trust 2009-1, has a duration of 2.94 years. The single-tranche deal sold at 168 basis points over one-month London Interbank Offered Rate, or Libor.

SLM Corp., better known as Sallie Mae, sold its $1.68 billion deal Wednesday. The student loan-backed deal sold at 25 basis points over prime rate, a benchmark. The single-tranche deal has a duration of 3.86 years. Joint leads are Barclays, Bank of America and JP Morgan.

CNH Capital America LLC sold a dealer floorplan-backed deal on Wednesday, according to a person familiar with the matter. The $583.25 million deal sold at 170 basis points over one-month Libor. The bond was led by RBS and Banc of America Securities.

World Financial Network sold three deals on Wednesday. The first, a $500 million deal of which the top-rated tranche is worth $395 million, sold at 165 basis points over a short-term benchmark. This portion is eligible for TALF loans.

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