Chapter 13 Bankruptcy Refinance Loan Programs Depending on your prequalification, you will be offered some or all of the following options for your next mortgage.

 

Types Fixed Rate Mortgages 30 Yr Fixed Rate 15 Yr Fixed Rate Interest Only 40 yr and even 50 yr amortization 2nd Mortgages Adjustable Rate Mortgages (ARMs) 6 month, 1yr, 2yr, 3yr, 5yr, 7yr and 10yr ARMs Interest Only 40 yr and even 50 yr amortization Home Equity Loans Which one is better? Fixed Rate loans give you the security of having a fixed rate loan for 30 or 15 years, but they always come with a higher rate and stiffer pre-pay penalty. However, depending on your situation, a fixed-rate loan might be better for you. Adjustable Rate Mortgages (ARMs) are usually the lowest rate available, but are only fixed for a certain period of time, and then go adjustable according to market indeces. The shorter period your ARM is fixed for, the lower the rate. These loans tend to be more popular because it allows you to have a lower payment while you work on repairing your credit and getting further from your bankruptcy discharge.

 

Closing Costs

Any time you refinance, there are closing costs involved. However, these costs can be rolled into the loan so you are not paying anything out-of-pocket, with the exception of the appraisal, that you pay for upfront. Here is a quick breakdown of the fees you can expect to pay at closing. Your mortgage consultant will give you exact figures when the loan goes into processing.

• Loan Origination Fees
  • Depending on the loan program and rate you select, you will pay 0 to 2 points in loan origination fees.
    
    
• Underwriting Fees
  • Varies by loan program, from $295 to $995.
    
    
• Taxes and Insurance
  • Depending on when your taxes and insurance are you do, you may be required to pay a portion or all of them. You also have the option of paying your taxes and insurance with the monthly mortgage payment, but this requires an additional 3 months of Taxes and Insurance to be paid at closing, raising your overall closing costs.
    
    
• Attorney, Title, and Settlement Fees
  • Your attorney fees, title fees and settlement charges will all be paid at closing.
    
    
    
    

Ready to Get Started? Find out what your options are. Apply online using our Chapter 13 Refinance Application.