Because sub prime mortgage loans typically come with sky-high interest rates, individuals with less-than-perfect credit scores assume that getting an average or decent rate is impossible. Quite the contrary, there are plenty ways to negotiate a lower rate and obtain a mortgage payment within your budget.

Here are three ways to get a lower rate on your sub prime or high risk mortgage loan.

1. Accept a Pre-payment Penalty: Some homebuyers are leery to accept a pre-payment penalty because it means paying fees if they choose to sell the property or refinance within the first two to three years. However, a pre-payment penalty can be very beneficial, and it'll save you money on the mortgage. The average homebuyer lives in their property for at least five years. Since the majority of pre-pays disappear within the first three years, homebuyers with a sub prime loan should seriously consider this alternative and save money.

2. Choose a Short-Term Adjustable Rate: Because sub prime loans have higher rates, borrowers pay higher mortgage payments, which can put a strain on personal finances. If looking to lower your mortgage rate and find an affordable payment, think about a short-term ARM. Adjustable rate mortgages are riskier than fixed-rate mortgages. After the initial fixed rate period, the mortgage rate fluctuates every year for the life of the loan. Good mortgage options are the 2/28, 3/27, or 5/25 ARM. A large number of adjustable rate mortgages start with a two or three year pre-pay penalty. During the initial two years, strive to improve your credit, and then refinance to a fixed rate before the first rate adjustment occurs.

3. Provide Ample Loan Documentations: Several sub prime mortgage loans are geared toward people who cannot document their income such as self-employed individuals. While low-doc or no-doc loans are available and widely used, borrowers will pay a higher rate because the risk is greater. If looking to get a low rate on a sub prime loan, provide the lender will full documentation. This includes two-year's tax returns, recent paycheck stubs, bank and savings account statements, and information on other assets or liabilities.