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Refinance after BK 7


striper1970
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Gentleman,

In two months I would get my discharged papers for my CH7. My question is IF I'm able to fix my credit and NOT show any of my BK accounts(so far I i was able to remove two of the accounts) and my FICO score goes up to at least 640. Can I refinance and get a good rate or will the BK show someone else while the paper work is done by the bank?

Thank You

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Generally, it would be possible to refinance and get better mortgage terms after a bankruptcy, depending on the terms of the current mortgage.

However, from your previous thread, I would find it very difficult to say yes, and even if you could, you would be paying the 3% off in excess of 100% (since you financed at 103 Loan to Value), plus all finacing costs, plus any prepayment pealties on the loan. If you have that mush cash left over after the bankruptcy, then yes, but it would be costly, and may not benefit you the way you like.

http://www.debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?p=151881&highlight=#151881

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I am not totally convinced that refinancing right away would be the best for you. Most (if not all) lenders will refinance the second, only when you refinance the first as well. In other words, you may not be able to get a stand alone scond mortgage.

Try to help me make some since out of this...... What loan amounts are you looking at? First mortgage, Second mortgage? Any way you look at things a second mortgage is going to be near 10% (par rates, with you paying closing costs) , and unless the second mortgage is a large dollar amount, the costs to recuperate the money needed to pay for the second mortgage divided by your monthly payment savings is how long it will take you to recuperate your costs of refinancing.

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Amort,

Thank You for helping me. I have two loans, 1st loan for 212000 at 7.50% (1440.00)and the second loan for 53000 at 11.75%(535) a month NOT including 3600 Taxes. I'm not that good when it comes to mortgages or refinancing but I was hoping If I can fix my credit report again(I did it before) I can probably ref and save a couple of hundred dollars. I do understand that I had 103% loan but I assumed after a year leaving in the house refinancing would be a good option to lower my payment.

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  • 11 months later...
Gentleman,

In two months I would get my discharged papers for my CH7. My question is IF I'm able to fix my credit and NOT show any of my BK accounts(so far I i was able to remove two of the accounts) and my FICO score goes up to at least 640. Can I refinance and get a good rate or will the BK show someone else while the paper work is done by the bank?

Thank You

You can refi once your Chp 7 is discharged. Having it removed for the report is good but, it will be seen regardless when title is run.

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My scores are now 590, 662 and 565. My adjustable rates will expired in August. What kind of rate will I get if I try to refinance now?

Thanks

What is your LTV, loan size and paument history for the last 12 months? What state do you reside? Can you document your income? Anyone quoted you w/o those questions answered is guesstimating at best.

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Under most circumstances, you can have a fixed rate on your new 80/20 loan. The interest rate will be higher, as the risk is greater to the lender for a fixed 30 year, but it should indeed be available.

If you are concerned about payments being too high, see if your broker/lender has a program of a 40/30. This is fixed for 40 years, with a balloon due in 30.

One lender has come up with a new "twist" on that, where the same loan is fixed for 30 years: the payments are amortized over 40 years for the first 10 years, then the 10th year the loan is "recast" to pay it off in the next 20 years.

Charles

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Charles,

Are prepayment penalties even half way possible to calculate? I'm considering trying to refinance in the fall, but my loans have a 2 yr pre-paymnet penalty.

Do current loan services ever refinance the same loan? Someone I know has country wide, and they offered them a refi deal on a loan they were already servicing.

Kris

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