Could Mortgage Refinance Help You Get Out of Debt

Mortgage Refinance Equity Loans are typically unavailable for credit scores under 620. Find out what your current credit score is and what it can be after filing for bankruptcy protection!

Your current situation may not be the same as when you initially purchased your home. Mortgage refinancing allows you to adjust your mortgage to better fit your current needs and may be a great bankruptcy alternative for you. When you refinance, you have the ability to start from scratch with a new mortgage. You can change your term, payoff existing debt or considerably lower your monthly obligations.

Home ownership comes with many rewards, being able to borrow money from the equity you've built up in your home is an excellent bankruptcy alternative.

Well start by defining what some of your options are:

Refinancing is simply replacing your current mortgage with a new one.

Cash-out Refinancing is a mortgage that allows you to borrow monies in excess of what you currently owe so that you can pay off those high interest rate credit cards or personal loans.

Home Equity Loans are in addition to your original mortgage and are often called second mortgages. With a Home Equity Loan, you will receive a lump sum that gets deposited into your bank account for you to allocate as you like.

A Home Equity Line of Credit (HELOC) is like a Home Equity Loan, but rather than receiving the money all at once, you have the ability to draw from the loan the same way you would a checking account. The benefit is that you only pay on the amount that you use and you can continue to draw from and pay down just like a regular mortgage.

Fixed rate mortgage? Adjustable rate mortgage? Interest only mortgage? What may have been right for you years ago, might not be the best mortgage for you today. Mortgage refinancing can change that adjustable rate mortgage to a fixed rate mortgage for the life of the loan.

Bankruptcy Alternatives
Chapter 7: A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining a mortgage refinance loan if at least 2 years have passed since the date of the discharge of the bankruptcy.

Chapter 13: A Chapter 13 bankruptcy also does not disqualify a borrower from obtaining a mortgage refinance loan as long as 1 year has passed and the borrower's payment history regarding the bankruptcy and the current mortgage has been made on time.

There is no one standard solution that's best for everyone. That's why our customized approach is so important to figuring out what's best for your individual needs. We spend that extra time getting to really understand you and customize a loan that will truly benefit you.