Since you bought your home, have you gone bankrupt? Do you now want to refinance your home to take advantage of lower interest rates? After filing for bankruptcy, it will likely become clear to you how much harder it is to finance or refinance a home. Still, it's not impossible. Online, you can find a lot of companies that can help you refinance your home.
Here are some things to think about if you want to refinance after filing for bankruptcy:
Even though interest rates have gone down, you might not be able to get a lower rate than when you first bought. Even though interest rates have gone down recently, if you had good or decent credit when you bought your home the first time, you may not be able to get a lower rate than you had when you bought your home the first time. Since you just went bankrupt, your interest rate will be a lot higher than it used to be. There are a lot of mortgage calculators you can use online to figure out if it would be better for you to refinance your home or not based on your current payment and interest rate.
Watch out for pre-payment penalties. Even if you can get a loan with a lower interest rate than the one you already have, don't get one with a penalty for paying it off early. If you already have a loan with no penalties for paying it off early, it would be a big mistake to take out another loan for 6 months to 3 years or more. With a pre-payment penalty, if interest rates go down again or you need to move, you will have to pay about 6 months of payments or interest to get out of the loan.
Beware of lenders who try to take advantage of you. Lending scams are on the rise, so make sure you work with mortgage lenders you can trust. Keep an eye out for signs of shady lending.
Look around. Get loan offers from at least three different places. This is a good rule of thumb for any loan for people with bad credit. When you get more than one loan offer, you can compare fees and interest rates. Don't take the first loan that you are offered.
