Getting a Georgia mortgage refinance after bankruptcy isn’t as difficult as most people think it is. Because you already have a current mortgage, and will simply be replacing this loan with a new loan, lenders don’t feel there is a great deal of risk involved when offering you an approval.
How Soon Can You Refinance?
Within 6 months of filing bankruptcy, you will be able to find a lender willing to offer you a Georgia mortgage refinance. In some cases, you may be able to refinance even sooner. That said, the longer you wait, the easier it will be to get a low interest rate.
What Will Lenders Look At?
When reviewing your request for a Georgia mortgage refinance after bankruptcy, a lender will look at several different things to determine whether of not you are eligible for the loan. Income, savings, and the ability to pay back the loan will all be items of focus, but the big deciding factor will be your credit report. Lenders want to see that you have made an effort to keep up with your current bills, as well as any lines of credit established after the bankruptcy was filed.
How Much Will the Refinance Cost?
The cost of your Georgia mortgage refinance will depend on how much money you are borrowing, the state of your credit score, and the level of risk the lender feels they are assuming. The biggest cost will be in interest. Currently, rates on Georgia refinance loans average 5.53 percent. Borrowers who have a low credit score or a bankruptcy on their credit report will most likely be expected to an additional 2 to 4 percent points more than this average. The other major expenditure for a Georgia mortgage refinance will be closing costs. These costs typically average just over $3,000 for Georgia residents. The good news is that your bankruptcy should have little to no effect on these fees.