Q: Is it possible to refinance from a 6% 30-year FHA-backed loan to a 15-year loan if I filed for bankruptcy two years ago? I have been in the house for 2.5 years and have never been late on a payment.
A: Given your bankruptcy, it is unlikely that you will be able to find a mortgage lender to make you a new loan until at least a few more years have passed. It's hard to say how long, which can depend upon whether or not you've rebuilt your credit and the kind of bankruptcy filing. However, it doesn't hurt to ask; call your existing lender and see what guidelines they can give you.
- What is a home equity line of credit?
A home equity line of credit is a type of second mortgage that allows homeowners to borrow money using their home as collateral.
- What is a home equity loan?
Homeowners with equity in their property can take out a home equity loan that uses their home as collateral.
- What is a rate and term refinance?
Homeowners have a variety of reasons for refinancing and each reason can indicate that one refinance option or another makes the most sense.
- Is a home equity line of credit tax-deductible?
One of the benefits of homeownership is the availability of a tax deduction for the interest paid on a mortgage.
- Are ten-year fixed-rate mortgages (FRM) available anywhere?
Sure! Virtually all lenders who sell product to Fannie Mae or Freddie Mac will be able to offer you mortgage with a 10-year term. However, interest rates are usually the same as the lender's 15-year offerings.