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Refinancing After Bankruptcy
Refinancing after a bankruptcy can seem like an especially difficult challenge, but it doesn't have to be. Six months after your bankruptcy has been finalized, you can find lenders willing to refinance your mortgage. In fact, refinancing your mortgage can help rebuild your credit to good standing in two year's time. The following steps will help you find the best refinance lender while helping your rebuild your credit record.
Preparing For Refinancing
Right after bankruptcy, you have six months to prepare to refinance your mortgage. Begin by establishing good payment history by regularly paying your bills and current mortgage. This is also a good time to open a credit card account to start establishing good credit history.
If possible, also start building up a savings account. The more cash assets you have, the better your application will look. Consider having a garage sale or taking a second job to raise funds.
Once you are ready to refinance, research mortgage lenders and their rates. Online mortgage websites allow easy comparison shopping. Look at both interest rates and fees of refinancing quotes. Usually a slightly higher rate with low fees is the best deal.
With bankruptcy on your credit report, you will typically need to work with a sub prime lender. You can expect to pay a few percentage points above a traditional mortgage, which you can find through online mortgage companies.
Choosing Your Refinancing Package
You may be offered a chance to cash out part of your home's equity when refinancing your mortgage. If you need to make home improvements or buy a car, this may be a good option. However, if you keep your home's equity in place, you are improving your credit.
Once you have decided on your terms, you can finish your loan application online or through the mail. Quotes are not guaranteed, so rates may vary slightly once your application has been approved. Before the loan is finalized though you have the opportunity to review the loan again.
With your refinancing completed, you can plan to lower your interest rates through refinancing in two years by building up your credit score. Continue to make regular payments and add to your cash reserves. Before you apply to refinance again, review your credit report to be sure your bankruptcy closed all past accounts on your record. With a solid credit history behind you, you can apply to traditional mortgage lenders.
To view our recommended sources for refinancing after a bankruptcy online, visit this page: Recommended Bad Credit Mortgage Lenders Online.
Carrie Reeder is the owner ABC Loan Guide, an informational website about various types of loans.
MORE RESOURCES updated Sat. January / 16 / 2021
How a mortgage refinance affects your net worth Fox Business
Mortgage refinance rates continue hitting record lows – here’s how to get the best deal now - Fox Business
Mortgage refinance rates continue hitting record lows – here’s how to get the best deal now Fox Business
3 Mortgage Refinance Strategies to Consider in 2021 The Motley Fool
Thinking of refinancing your mortgage? Do your homework before you jump in. - The Philadelphia Inquirer
Thinking of refinancing your mortgage? Do your homework before you jump in. The Philadelphia Inquirer
What Is A Debt Consolidation Refinance? | Pros And Cons The Mortgage Reports
Can you refinance a mortgage while in forbearance? Fox Business
What is a mortgage prepayment penalty fee, and how does it work? Business Insider
Buying a Second Home: What to Do and How Much It Costs Credible News
Mortgage refinance: Everything you need to know Fox Business
How to decide if you should refinance your mortgage Fox Business
Today’s mortgage refinance rates hold steady for third consecutive day | December 11, 2020 - Fox Business
Today’s mortgage refinance rates hold steady for third consecutive day | December 11, 2020 Fox Business
How to refinance your mortgage Fox Business
Who's exempt from the new mortgage refinance fee? Fox Business
Everything You Should Know About The New Mortgage Refinancing Fee That Goes Into Effect Dec. 1 - Forbes
Everything You Should Know About The New Mortgage Refinancing Fee That Goes Into Effect Dec. 1 Forbes
Should You Lend Your Kids Money for a Home Down Payment? The Motley Fool
4 ways to get lower mortgage refinance rates Fox Business
Today’s mortgage refinance rates mixed — one key rate drops while two hold steady | December 15, 2020 - Fox Business
Today’s mortgage refinance rates mixed — one key rate drops while two hold steady | December 15, 2020 Fox Business
How do I get the most out of my mortgage refinance? Fox Business
10 things to know before refinancing your mortgage Fox Business
Today's mortgage refinance rates don't budge for fourth consecutive day | November 24, 2020 - Fox Business
Today's mortgage refinance rates don't budge for fourth consecutive day | November 24, 2020 Fox Business
Refinancing your mortgage? Don’t make this mistake Fox Business
Today's mortgage refinance rates stay low with the election underway | November 3, 2020 - Fox Business
Today's mortgage refinance rates stay low with the election underway | November 3, 2020 Fox Business
How often can you refinance your mortgage? Fox Business
Complete Checklist of Mortgage Refinancing Requirements Credible News
10 tips for getting the best mortgage refinance rates Business Insider
The best mortgage refinance lenders of January 2021 Business Insider
How to refinance your mortgage without closing costs Fox Business
When should you refinance your mortgage? Fox Business
Today's mortgage refinance rates hold steady at unprecedented lows | October 16, 2020 - Fox Business
How to get a low-cost mortgage refinance Bankrate.com
Now Is A Great Time To Refinance Your Mortgage - New Refinance Fees Delayed Until December 1 - Forbes
How to Refinance Your Home | Home Lending Chase News & Stories
Today’s mortgage refinance rates keep sinking, reaching 37-day low | November 13, 2020 - Fox Business
Mortgage refinancing is about to get more expensive Pittsburgh Post-Gazette
How much can you save by refinancing your mortgage? Fox Business
No-Closing-Cost Refinance: Is It Right for You? NextAdvisor
The impact of the coronavirus on mortgage refinancings Brookings Institution
Can I Refinance My Mortgage With Bad Credit? NextAdvisor