Generally with a sub prime loan you need to pay a high interest. If you take some time out do a survey, you will be able to get a deal which can save you money. Keep a few points in mind like:

  •  Compare different Lenders: Doing a research on different lenders and their deals helps to get the best package with some negotiations. 
  • ARM is better: If you plan to stay in the house for a short period then ARM is a better option, as the interest fluctuates every year. 
  • More down payment: If you have the capacity to pay more down payments in one go then its better as you have to pay less interest on the whole amount of refinance.
  • Paying points: Paying points can lower your interest rates to a great deal as this is an up front cost and needs to be adjusted during the break even period.
  • Cash Reserves: Taking advantage of lower interest rates and tax deductibility by increasing your credit scores can help refinance easily and improve cash reserves.

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