Should or could I refinance my home loan after my chapter 13 closes?
I have had my home since 2003 and have a 6.5% interest rate. I have a VA Loan. I would like to free up money if possible to pay for student loans. I have been in Bankruptcy for about 5 years. My chapter 13 just closed.
Should I even try to refi, or would my horrible credit not get me a better rate?
Posted August 13th, 2010 in Bankruptcy Q And A. Tagged: bankruptcy, chapter 13, interest rate, money, student loans.
There are 2 things to consider.
The recent drop in interest rates might mean that you can refinance to 5% within the next year or 2.
In many states there are "non-recourse" laws to protect homeowners. If you live in one of those states, you want to keep your original loan that you used to buy the house. If you ever lose the house to foreclosure, the bank can take the house but nothing else. If you refinance, you might lose this protection.
August 13th, 2010 at 7:01 pm