NO INITIATIVE (no income/no assets) mortgage refers to an unsecured loan extended to an individual who can hardly pay off the debt. A NO INITIATIVE loan is often extended without any verification of an individual’s income or assets, thereby making them riskier for banks. Although they are not as popular with banks, NINAs do present some advantages for borrowers.
The biggest advantage of a NO INITIATIVE mortgage is that you can enjoy low interest rates. Usually, no income loans come with very low initial interest rates. In addition, because no documents of income or assets are required in order to get a mortgage, they are much easier for people to obtain. They also give lenders less of a hassle when it comes to repayment.
Despite the fact that NO INITIATIVE mortgages have higher rates of interest than other conventional loans, there are ways in which you can lower the rate. First, make sure that the credit score of the individual is good. If he has bad credit, he will have trouble securing lower interest rates. If he has good credit, then he can negotiate for a lower interest rate. You could also approach your bank to request a lower interest rate on your NO INITIATIVE mortgage.
In addition to improving credit, you could improve your credit history if you make timely monthly payments on your NO INITIATIVE mortgage. Even with good credit, it may not be possible to secure a low interest rate or a fixed interest rate. You should consider refinancing once your NO INITIATIVE mortgage has finished paying off. Refinancing allows you to have a lower interest rate and a longer term in which to pay off your mortgage.
You can refinance if you have a high balance on your mortgage. Many banks allow NO INITIATIVE mortgages to be refinanced when you already have a high amount of debt and cannot easily pay off that debt. This type of refinance is generally available to people with good credit or to people with poor credit. Most banks will require a credit check to help you get approved for this type of refinancing.
An equity loan is also a viable option for people who are planning to refinance an NO INITIATIVE mortgage. Equity loans are given to borrowers who are unable to make the full payment on their mortgage because of some reason. The borrower agrees to use that equity to make the payment and the bank then takes a lien on the equity loan in exchange for the money that is received from the loan.
The disadvantage to this type of refinancing is that you are taking the risk of losing your home if you do not have enough equity in your home. As long as you keep up your payments on your NO INITIATIVE mortgage, you will usually be able to maintain a good credit rating.
If you are able to get a NO INITIATIVE mortgage and a decent credit score, you can refinance using an equity loan to get lower interest rates. If your credit is good, you can also obtain lower interest rates on a refinance of your NINA mortgage.
If you have a bad credit rating, you will most likely pay higher interest rates on your refinance. Your home value will also likely drop when you refinance. However, a bad credit rating does not have to mean that you cannot receive lower interest rates.
If you apply for a mortgage with a credit score that is less than 600, you will be rejected by all three lenders. You will be considered “High Risk” by most mortgage companies. In order to get approved by these lenders, you will need to provide additional information, such as income and other types of information, to prove your ability to make the payments on your mortgage.
If you do not have a lot of money to start with, you may need to obtain a mortgage at a lower interest rate or refinance your NINA mortgage with a lower interest rate. You may be able to qualify for the lowest mortgage rates on your NO INITIATIVE mortgage if you have good credit. If you are able to get refinance and have a good credit, you can easily qualify for a lower mortgage rate.