Why Refinance a Low Doc Loan?

2010 April 21
by iggy

There are several reasons why one would get a low doc loan.  Often, the primary reason is that there is a lack of documentation that the borrower is able to provide the bank, which results in having no other choice but to get a low doc loan.  However, the commonproblem with low doc loans is that because the banks and lenders do not have any solid basis to grant a loan, interest rates of these loans are set fairly high.  This means that if one is given a chance to save on interest, then low doc loans are not the way to go.

For others, they may be in bad credit, and there is no other loan available to them but these types of loans.  What most people forget is that it is still very possible to refinance a low doc loan.  The basic first step that is usually taken is to check the existing interest rates for low doc loans.  If they are lower than the rates given to you previously then it means that refinancing is a good option.  This is easier said than done because one has to go through a lot of banks and lenders first to find the best interest rates.

An easier method would be to ask help from home loan experts.  They have access to a lot of lenders and they can set up a new low doc loan package for you that will save you a lot of money and interest expenses.

You may not realise it, but now should be the best time to refinance a low doc loan.  This is because a handful of banks and lenders have slashed interest rates, thus making refinancing your loans a truly attractive option.  There are numerous ways to save, and having a chance to refinance loans is one of these interest saving devices.

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