Even with bankruptcy, refinancing a home mortgage can put more money in your pocket every month with lower mortgage payments, or to finance a large purchase. However, sometimes a bankruptcy can hurt your chances of refinancing at a lower rate than you have now, making a mortgage refinance pointless. So make sure to research a variety of different mortgage lenders to know your options and the lowest quoted rates.

Good Reasons to Refinance a Home Mortgage.
There are many good reasons to look into refinancing. Mainly, people refinance to get a lower interest rate than they currently have. If you can refinance at just 1% (Hopefully more) lower than your rate is now, you may save hundreds of dollars. Ultimately, the goal of refinancing a home loan is to have extra money every month. Although some home owners do choose a cash out refinance where they end up increasing the cost of their home. A cash out refinance is just borrowing money from the equity of your home. This can appeal if you want to reduce debts, home repairs, home improvements, or other big purchases.

Repair Your Credit Rating Before Refinancing.
The chances of getting a good low mortgage rate immediately following a bankruptcy are pretty low. Therefore, it is advised to improve your credit score as much as possible before refinancing. You should get your own copy of your credit score before applying with different lenders. Use this report to fix any errors you encounter and to see where you can eliminate old debts and improve your credit score. Usually paying off store credit cards, credit card, auto loans is a good way to quickly improve your credit rating. Do not get yourself into more debt before a refinance, or get new lines of credit.

Research Potential Mortgage Lenders.
There are a lot of different mortgage lenders who specialize in bad credit, or post bankruptcy refinancing. Sub prime mortgage lenders are especially good at this and have a wide variety of options to help you. You can research potential mortgage lenders using the internet. There are a lot of websites out there from lenders trying to get your business. Make sure to shop around to find the best rates, terms and conditions you can. Once you get a rate quote you like you can shop that quote around to other potential lenders.

-M Petrone

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