Can you refinance a mortgage in Georgia after bankruptcy?

Obtaining a Georgia mortgage refinance after bankruptcy is not as difficult as most people think it is. Because you already have a current mortgage and will simply replace this loan with a new loan, lenders don’t feel there is a great deal of risk involved in offering you an approval.

How soon can you refinance?

Within 6 months of filing bankruptcy, you may 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 being said, the longer you wait, the easier it will be to get a low interest rate.

What will lenders look at?

When reviewing your Georgia mortgage refinance application after bankruptcy, a lender will look at several different things to determine if you are eligible for the loan. Income, savings, and ability to repay the loan will be focus items, but the 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 refinancing your Georgia mortgage will depend on the amount of money you borrow, the state of your credit score, and the level of risk the lender thinks you are taking. The biggest cost will be in interest. Currently, Georgia refinance loan rates average 5.53 percent. Borrowers who have a low credit score or a bankruptcy on their credit report will most likely be expected to earn 2-4 percentage points more than this average. The other major expense 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 or no effect on these charges.