Learn About Bankruptcy Mortgage Refinancing
Most homeowners assume the door marked “Mortgage” is boarded shut for them after a bankruptcy. Refinancing is actually a financial necessity on the road to rebuilding your credit. Here is what you need to know about refinancing your mortgage after bankruptcy.
The mortgage industry is extremely competitive; this means there are opportunities available to you that did not exist ten years ago. Having a recent bankruptcy no longer prevents you from refinancing your mortgage; however, the amount you pay depends on how savvy a shopper you are. Online search makes it easy to compare loan offers from a variety of different lenders.
Watch out for “Computerized Origination Fees,” as many sites like Lending Tree charge ridiculous fees for filling out a form on their site. Lending Tree is notorious for this and will charge you as much as $1300 while claiming there is no fee to you for their service. The bottom line with online mortgage refinancing is to carefully comparison shop and read all the fine print before you decide on a loan.
Your first priority when rebuilding your credit is this: never, ever, make a late payment. This is so important to your credit score after bankruptcy. Having at least six months to two years of on time payments on your credit history will allow you to qualify for a much lower interest rate and get you favorable terms on your new mortgage; that means on time payments with your current mortgage lender, and on time payments with your new credit card.
Mortgage brokers can be an excellent resource for homeowners with a recent bankruptcy. Be careful with mortgage brokers, you have to watch them like a hawk as they are just like used car salesman when it comes to overcharging for their services. Mortgage brokers routinely mark up your interest rate to boost their profits at your expense.
