Home Loans
The Basics of Refinancing a Maryland Mortgage After Bankruptcy
(presented by www.refinance-refinance.net - mortgage lenders)
By J.A. Hale
Within six months after filing bankruptcy, and possibly before, you should be able to easily find lenders who are willing to refinance your Maryland mortgage. But before taking any formal steps, you should learn as much as you can about the process.
Approval is Only a Click Away
When it comes time to apply for a Maryland mortgage refinance after bankruptcy, some borrowers get a little nervous about the approval and worry that they will be given a big, fat “NO” from the lender. If you feel this way, relax. In most cases, approval is just a click away. All you have to do is find the right lender and fill out an online application. If you can afford the loan, it’s yours.
Rates and Terms Vary
Interest rates in Maryland aren’t at an all time low, but they are very close to it. The average rate on a Maryland mortgage refinance is 5.59 percent. Of course, you will probably not be able to get this rate unless you have taken serious steps to repair your credit after the bankruptcy. You will need a score of 650 or above. If you aren’t there quite yet, all hope is not lost. It is possible to find fair rates and terms, you simply have to look for them. Keep in mind that rates and terms can vary significantly from lender to lender. Just because one lender quotes you at 10 percent, it doesn’t mean that they all will.
You Can Get Cash at Closing
Don’t be surprised if your lender offers to borrow you the money you asked for and then some. Maryland property values have seen hearty gains in the last five or six years. Your lender may suggest that you borrow from some of the equity that has accumulated in your home. While this will be a great proposal for some borrowers, cash-out refinancing may not be right for everyone. Take time to consider whether or not you want to get cash back at closing before you contact a lender. This way you won’t feel pressured to make an answer once the offer is on the table.
