What You Should Know About Bankruptcy Mortgage Refinancing
If you are considering mortgage refinancing with a recent bankruptcy on your record, qualifying for a good interest rate is essential for your new loan. Finding a good deal when mortgage refinancing can be difficult, especially if you have not built up your credit. Here are three tips to help you qualify for the best rate when mortgage refinancing with your financial situation.
Refinancing your mortgage has many advantages: lower interest rates, lower monthly payments, cashing out equity, and rebuilding your credit, just to name a few. Because you have a bankruptcy on your record refinancing your mortgage will be more difficult, but not out of your reach. There are steps you need to take before you apply for a new mortgage; this will ensure you qualify for a decent interest rate and favorable terms on the new mortgage loan.
The Internet is an excellent resource when mortgage refinancing after bankruptcy. You can quickly research mortgage refinancing interest rates from dozens of national mortgage companies. Don’t stop at the mortgage rate, request Good Faith Estimates from each lender you are considering to perform a line-by-line comparison of each mortgage refinancing offer.
Your first priority when rebuilding your credit is this: never, ever, make a late payment. This is so important to your credit score after bankruptcy. Having at least six months to two years of on time payments on your credit history will allow you to qualify for a much lower interest rate and get you favorable terms on your new mortgage; that means on time payments with your current mortgage lender, and on time payments with your new credit card.
You will need to spend some time learning about mortgages and researching mortgage lenders. This will allow you to avoid making many of the costly mistakes homeowners make when refinancing their mortgages. Shop from a variety of mortgage lenders and compare interest rates, lender fees and closing costs; by making this comparison from a variety of mortgage lenders you will be able to spot lenders that are trying to take advantage of borrowers with their terms, conditions, and fees.
