Refinancing your mortgage after a Chapter 7 bankruptcy allows
you to cash out your equity and find lower rates. You can also
lower your payments by extending your loan term. Two years after
your bankruptcy has been discharged, you may qualify for
conventional rates. But if you need a refi loan sooner, you can
find a sub-prime lender to work with you.
Timing Your Refinancing
Most financial advisors will counsel you to wait two years
before applying for a new loan. Within those two years, you can
reestablish your credit score to good standing and qualify for a
Fannie Mae loan with market rates.
However, you can find refinancing sooner by working with a
sub-prime lender. Depending on your credit score, cash assets,
and income, you can find a financing package only a couple of
points higher than conventional rates.
Before You Apply For A Refi Loan
Before you apply for a refi loan, check your credit report to be
sure that your bankruptcy was properly discharged. Make sure
accounts are in good standing and have accurate information. You
can also include a letter explaining the circumstances of your
bankruptcy, which can help your loan application.
Also, take the time to research lenders. Just like with any
product, shopping around will guarantee that you get the best
deal. It just takes a few minutes to receive loan quotes online.
And you can review them at home with no pressure. While you are
looking at rates, also note fees and closing costs.
Getting Better Rates
If you didn't get the best terms or rates on your first
mortgage, now is the time to find them. For the lowest payments,
choose an adjustable rate mortgage. Usually for the first two to
five years rates will be lower than fixed rates. Some lenders
will also allow you to lock in a rate for a fee.
Interest rates can also be lowered by choosing a shorter term
loan. While your total interest costs will be less, your monthly
payments will be higher. Some lenders will also lower rates if
you set up an automatic payment, usually debited from your
checking account.
Commercial Collections: Business Finance Booster Shot
If commercial collections is not part of your B2B business plan, you’re losing money. Get your cash flowing again with these commercial collection secrets. Commercial Collections: Fixture of the New B2B Culture If you’re in the...read more
Refinance Mortgage: Smart Move For Home Buyers
There are several reasons why a refinance mortgage might just be the right option for you. Getting a refinance mortgage is a smart move for any home buyer. With refinance mortgage, not only do you lower down your interest rates but you also reduce...read more
Refinance Your Second Mortgage
A 2nd mortgage is a secured loan on your property, with your home serving as collateral. Depending on the particular terms of your second mortgage, you could be able to refinance if you wish to reduce your monthly payments or are in need of extra...read more
Six Ways Under Your Nose To Finance Your Home-Based Business
There are lots of ways to get additional capital to expand a home-based business. But before you look outside for financing, leaving the decision about your company’s progress and merits to someone else, consider these six ways under your nose to...read more
Refinance After Bankruptcy - Applying For A Refi Loan After A Chapter 7
