Tuesday, April 08, 2008

Refinancing After Bankruptcy - Tips on Refinancing Your Home Mortgage After a Bankruptcy

Have you filed bankruptcy since you bought your home? Are you now looking to take advantage of lower interest rates by refinancing your home? You will probably soon recognize how much more than hard it is to finance or refinance a home after a recent bankruptcy. It is not impossible though. There are many companies online that volition aid you refinance your home.

Here are some tips to see when refinancing after a bankruptcy:

Even though interest rates have got got dropped, you may not be able to get a lower interest rate than when you bought initially - If you had nice or good credit when you bought your home originally, even though interest rates have lowered recently, you may not be able to measure up for an interest rate any lower than you had when you bought your home originally. With a recent bankruptcy, your interest rate is going to be quite a spot higher than before. There are many mortgage calculators available online that volition aid you analyse your current payment and interest rate and state you if it is better for you to refinance your home or not.

Watch out for pre-payment penalties - Even if you can measure up for an interest rate that is lower than what you currently have, make certain you don't get yourself into a loan with a pre-payment penalty. If you have got a loan right now free and clear of any pre-payment penalties, it would be a large error to lock yourself into another loan for 6 calendar months to 3 old age or more. If interest rates driblet again or you need to move, you will have got to pay about 6 calendar months of payments or interest in order to get out of the loan with a pre-payment penalty.

Beware of predatory lenders - There are many lending cozenages on the rise, do certain you are dealing with reputable mortgage lenders. Watch out for marks of fly-by-night lending practices.

Shop around - Get loan offers from at least 3 lenders. This is a good regulation of pollex with any bad credit loan. When you can get multiple loan offers, you can compare interest rates and fees. Brand certain you make not accept the first loan offered to you.


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