Every homeowner finds it hard to know when to refinance and when not to, but after bankruptcy, the choice is even harder. Your evaluation should take into account a lot of different things, like your current finances, your credit score, and your chances of getting approved. Here are a few tips to help you decide if you should refinance your Oklahoma mortgage after bankruptcy:
Taking a look at your finances
Refinancing a mortgage after bankruptcy is a good idea for a lot of reasons. You might be able to get a lower rate or payment, rebuild your credit, or get cash back at closing. You will have to pay to refinance, which is a shame. On average, a mortgage loan in Oklahoma costs $3,181 to close. If you can't pay for your refinance up front or if this amount of money won't be more than what you'll save, refinancing might not be the best thing for your finances.
How Credit and Interest Rates Work
Aside from money, there are two other things that will be the most important when deciding if it is the right time for an Oklahoma mortgage refinance after bankruptcy. Your credit score and interest rates are two of these things. Your credit score will always affect the rate that a lender charges you. If your score is low, you'll pay more in interest when you refinance. Before you decide to refinance, you need to know where you stand with your credit score and how it will affect the rate you have to pay.
Getting Approved
Surprisingly, it's not that hard to get approved for an Oklahoma mortgage refinance after bankruptcy. As long as the amount you owe on your mortgage is more than what your house is worth, you shouldn't have too much trouble. Most lenders, especially those in the subprime market, will be happy to work with you to get you the refinance loan you need.
