| Refinancing your mortgage after a Chapter 7 | | | | You can also include aletter explaining the |
| bankruptcy allows you tocash out your equity and | | | | circumstances of your bankruptcy, which can |
| find lower rates. You can also lower | | | | helpyour loan application. |
| yourpayments by extending your loan term. Two | | | | Also, take the time to research lenders. Just like |
| years after your bankruptcy hasbeen discharged, | | | | with any product,shopping around will guarantee |
| you may qualify for conventional rates. But if you | | | | that you get the best deal. It just takesa few |
| need arefi loan sooner, you can find a sub-prime | | | | minutes to receive loan quotes online. And you |
| lender to work with you. | | | | can review them athome with no pressure. While |
| Timing Your Refinancing | | | | you are looking at rates, also note feesand closing |
| Most financial advisors will counsel you to wait | | | | costs. |
| two years beforeapplying for a new loan. Within | | | | Getting Better Rates |
| those two years, you can reestablish yourcredit | | | | If you didn't get the best terms or rates on your |
| score to good standing and qualify for a Fannie | | | | first mortgage, nowis the time to find them. For |
| Mae loan withmarket rates. | | | | the lowest payments, choose an adjustablerate |
| However, you can find refinancing sooner by | | | | mortgage. Usually for the first two to five years |
| working with a sub-primelender. Depending on | | | | rates will belower than fixed rates. Some lenders |
| your credit score, cash assets, and income, you | | | | will also allow you to lock in arate for a fee. |
| canfind a financing package only a couple of points | | | | Interest rates can also be lowered by choosing a |
| higher thanconventional rates. | | | | shorter term loan. |
| Before You Apply For A Refi Loan | | | | While your total interest costs will be less, your |
| Before you apply for a refi loan, check your | | | | monthly payments willbe higher. Some lenders will |
| credit report to be surethat your bankruptcy was | | | | also lower rates if you set up an |
| properly discharged. Make sure accounts are | | | | automaticpayment, usually debited from your |
| ingood standing and have accurate information. | | | | checking account. |