If you are looking into refinancing your mortgage into the record low rates available but have filed for bankruptcy since you purchased your home, you will quickly realize that it is much harder to do. However, it is not impossible. There are plenty of mortgage lenders who will be willing to work with you, in fact some specialize in it.

If you are looking to refinance, and have filed for bankruptcy here are some tips to help you:

*The current record low mortgage rates do not mean that you will get a lower rate on your mortgage when you try to refinance.
Even though current mortgage rates are at record lows across the country, you may not be able to refinance at a lower rate lower than you have now. Having filed a recent bankruptcy, you mortgage rate is eligible to be higher than it was. Use mortgage lenders websites to research the costs with a mortgage calculator and see if it will be beneficial to refinance or not.

*Know about any prepayment penalties.
Always check the terms and conditions to know if you will have to pay a prepayment penalty. Even if you do qualify to get a mortgage rate that is lower than the one you have now, the cost of a prepayment penalty may ruin the better mortgage rates. Ideally you should not be locked in to anything. You should have the freedom to choose your mortgage lenders, terms and conditions, of your home loan at will, even with bankruptcy.

*Watch out for predatory mortgage lenders.
Lately, due to the low mortgage rates, the number of people looking to refinance their home has increased a lot. Due to this there are lenders out there looking to take advantage of people who do not know better, and stick them with a horrible mortgage with bad terms, rates, conditions or all of the above. Be careful of fly by night lenders.

*Use the internet to search for potential lenders.
You should get get at the minimum 3 different mortgage quotes from different lenders, especially when looking for a refinance after bankruptcy. Find your lowest quote and shop that quote around, especially with a bankruptcy, this will pressure mortgage lenders to meet, or hopefully beat, the quote you showed them.


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