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futuregains

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How long do I have to wait to refinance my 1st ans 2nd mortg into 1?
Mortgage Refinancing after Bankrupcy. My bankruptcy was discarded 1 yr ago. Have a perfect payment history- c scores 684/670. I want to refinance 1st and 2nd mortgage to one?

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Lots of pitfalls to be aware of

Helpful to 1 out of 1 people

It depends mostly on the amount of equity you currently have in your home (amount of the principal you currently have paid off).  Meaning that you will have to refinance the entire amount all over again and still have enough equity left over to cover the new closing costs, appraisals, and inspections.  If you don’t have enough equity in your home now, those costs will have to come from your pocket.  But this isn’t all you have to worry about in a refi, but it's the best starting point to consider.

However the biggest pitfalls you will have to understand, is that almost none of the conditions will be the same as last time.  And this new loan will take in consideration your current status, regardless of your past history (EVEN if it's with the SAME BANK; don’t assume they will just check off all of your closing and underwriting conditions simply because your current loan is with them; and they may ask for WAY more proof and documentation this time around).  Your credit, the house value, and your debt to income ratio will most likely all be completely different this time around.  So don’t expect to get the same deal as last time.

And finally, be aware, that your interest rate will likely be way higher than the first time.  This will be a direct result of your bankruptcy and the one loan option you are trying to get.  There are a TON of banks that will refi your current loan with a bankruptcy on file, however they ALL charge large interest rates as a result of the perceived threat of default.  So to offset that threat, they charge larger amounts of interest to justify the loan.

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