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Rate Refinance
Question: Hi Bill - My bankruptcy was just confirmed this month. I have an arm with my mortgage, it will jump for the first time in February 2008. What are my chances of finding someone to refinance me? Right now my rate is 7.6
Answer: Many people who have filed for bankruptcy protection believe that they will not be able to obtain new credit until the bankruptcy filingfalls off their credit report, 10 years after their bankruptcy is discharged. Some filers even believe that they will be unable to borrow money for the rest of their lives. Generally speaking, these are erroneous beliefs.
While you may be able to obtain a refinance loan, your low credit score will make finding a loan with a low interest rate much less likely.
But, if you want an introduction to pre-screened mortgage lenders, Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at:
Mortgage Refinance Quote
While it is true that bankruptcy seriously damages your credit rating, it does not automatically prevent you from obtaining a loan. In fact, some companies, called sub-prime lenders, specialize in lending money to consumers with credit problems, such as bankruptcy. Whether or not you will be able to find a mortgage company willing to extend you the credit you need will primarily depend on your credit score and other
factors in your credit history. From my experience, most sub-prime lenders require a minimum credit score in the mid to low 500's, so whether or not your bankruptcy filing will prevent you from obtaining a loan depends on how much the bankruptcy has lowered your credit score. Another major consideration for sub-prime lenders is your payment history on your current mortgage loan. If you have made all of your mortgage payments on time for the past few years, you stand a much better chance of qualifying for a refinance loan. Making your payments on time on your current mortgage is a good indicator that you will repay your new mortgage in a timely manner.
The only way to determine whether or not you will qualify for a refinance loan is to apply for a loan with several different lenders and/or brokers. Not only will these mortgage professionals be able to tell you whether or not your currently qualify, but if you do not qualify, they can tell you what aspects of your credit history you need to improve before obtaining a loan. If cannot find a lender willing to extend you credit,
you should work on improving your credit score and reapply when your score has improved sufficiently. When you talk to a lender, he can tell you the minimum score required, giving you a goal to work toward.
If you would like to read more about mortgage refinance loans, I encourage you to visit the Bills.com Home Refinance Resources page at http://www.bills.com/home-refinance/
If you enter your contact information in the Bills.com Savings Center at the top of the page, we can have several pre-screened mortgage brokers contact you to discuss the loan options available to you. You should also visit the Bills.com Credit Solutions page at http://www.bills.com/credit/ to learn more about credit, credit reporting, and ways to improve your credit score.
I wish you the best of luck in finding a lender willing to work with you. I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
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