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You can still get a fixed rate mortgage if you have bad credit. The rate will depend on just how “bad” your credit is at the time of application. You might have to accept an interest one or two per cent above the normal good credit fixed rate and you should think carefully if this is what you really want. The reasons for your less than perfect credit are crucial to your decision to apply for a fixed rate versus an adjustable rate mortgage.
Be honest. If you are simply living beyond your economic means and are habitually lackadaisical about making your required payments on time, you might be better off with a fixed rate, even if it is higher than it need be. If, however, your current situation is caused by income disruptions, medical bills, or other issues that should be corrected in the near future, you might be better served with an adjustable rate mortgage loan. The rate will be lower for a while and you might be able to correct your credit deficiencies before the rate escalates. If you can, you might once again qualify for a lower fixed rate mortgage in the near future.