Refinancing After Bankruptcy - Helpful Tips And Ideas
Michalis 'BIG Mike' Kotzakolios
Kotzakoliou, SSA

Generally, you don't have to wait 2 years for refinancing after bankruptcy with a Chapter 7 bankruptcy discharge. With a Chapter 13 bankruptcy, you can get refinancing the next day with many lenders before the discharge. With Fannie Mae loans you have to wait 2 years for refinancing after bankruptcy with a Chapter 7 bankruptcy. Most other loans you can refinance a day after discharge with Chapter 7 bankruptcy.

The reason you can refinance before discharge with Chapter 13 is because it's on a payment plan for 3-5 years from the bankruptcy filing date. You can get a Chapter 13 refinance in as little as 6 months from filing, not discharge and you can payoff your Chapter 13 bankruptcy in the process if you have enough equity in your home. A good mortgage broker can help with refinancing after bankruptcy. Mortgage brokers know where and how to find the best rates/terms available.

One of the best places to compare lenders and mortgage rates for refinancing after bankruptcy is on the Internet. Be sure to look at both interest rates and fees when comparing refinancing quotes. A slightly higher rate with low fees is usually the best deal when refinancing after bankruptcy.

When considering the best refinancing after bankruptcy, you may decide to take cash out of your home's equity. This may be a good idea if you make home improvements, but buying a vehicle may not be. The more equity you have in your home, the easier it will be to improve your credit after bankruptcy.

After you get approved for a refinancing loan, be sure to review everything, before you sign the documents. Read all the fine print and be sure you are getting the term and rate you expect. There is no need to rush refinancing after bankruptcy. Remember what caused your bankruptcy in the first place. Haste makes waste, in the financial and credit world.

If you make payments on time, you can refinance with lower interest rates in a couple of years by improving your credit score. When you decide on refinancing after bankruptcy, be sure to check out your credit report. Make sure all past accounts are closed from the bankruptcy discharge. When you have great credit history behind you, you can get some of the best rates/terms available, even with a previous bankruptcy. When considering refinancing after bankruptcy, take time to check out all the resources, tools and services that are available online.