Mortgage applicants nationwide with dents in their credit histories are about to get a creative new alternative: Call it the credit rehab loan. Or the sinners' redemption mortgage. Or call it by the name its sponsor uses -- the performance loan.

The concept is so simple you wonder why major lenders haven't offered it before. It works like this: If you as a borrower demonstrate that you can make your monthly mortgage payments on time, then you should qualify for a lower rate. After all, you've performed -- you've shown you're a good credit risk.

After two years of timely payments, the lender will cut your rate by either one-half of a percentage point or a full percentage point. You won't have to refinance or reapply for the break. It'll be built into the original loan contract. You'll get it automatically unless you fall behind on payments. The definition of timely is generous, by the way. All you have to do is pay within 30 days of the monthly due date, and you qualify.