Refinancing After Bankruptcy - Tips On Refinancing Your Home Mortgage After A Bankruptcy by:Carrie Reeder

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 realize how much more difficult it is to finance or refinance a home after a recent bankruptcy. It is not impossible though. There are many companies online that will help you refinance your home.

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

Even though interest rates have dropped, you may not be able to get a lower interest rate than when you bought initially - If you had decent or good credit when you bought your home originally, even though interest rates have lowered recently, you may not be able to qualify 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 bit higher than before. There are many mortgage calculators available online that will help you analyze your current payment and interest rate and tell you if it is better for you to refinance your home or not.

Watch out for pre-payment penalties - Even if you can qualify for an interest rate that is lower than what you currently have, make sure you don't get yourself into a loan with a pre-payment penalty. If you have a loan right now free and clear of any pre-payment penalties, it would be a big mistake to lock yourself into another loan for 6 months to 3 years or more. If interest rates drop again or you need to move, you will have to pay about 6 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 scams on the rise, make sure you are dealing with reputable mortgage lenders. Watch out for signs of shady lending practices.

Shop around - Get loan offers from at least 3 lenders. This is a good rule of thumb with any bad credit loan. When you can get multiple loan offers, you can compare interest rates and fees. Make sure you do not accept the first loan offered to you.

About the author

Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.

View our recommended http://www.abcloanguide.com/refinanceafterbankruptcy.shtml lenders.

POST COMMENT

When the Job Search is Over, be Sure to Say Thanks by:Heather Eagar Debt Settlement Vs. Debt Consolidation by:Carrie Reeder The Best Debt Management Programs - How To Choose by:Carrie Reeder Home Loan Refinancing - When Do You Have To Close? by:Carrie Reeder Lower Credit Card Debt by:Carrie Reeder Low Interest Debt Consolidation Loans - Getting A Low Rate by:Carrie Reeder Don't Skip the Follow Up After an Interview by:Heather Eagar Help With Debt Problems by:Carrie Reeder Buying Investment Property by:Steve Gillman Cash Out Refinance - Things To Know About Refinancing Your Mortgage To Get Cash Out by:Carrie Reeder Debt Negotiation Vs. Debt Management by:Carrie Reeder Four Common Sense Tips for the Telephone Interview by:Heather Eagar Debt Management Advice by:Carrie Reeder