How long after a foreclosure refi can I refi again?

lioneleverett · Joined: 14 Sep 2006 Posts: 3 2.07 Dollars($)

I refinance out of a foreclosure in June of this year, when can I refinance again? July, August, and September payments have been on time.

helping_user

Hi Lioneleverett,

When you will refinance the second time, depends on the personal choice of borrower and number of factors. But the general rule of thumb says, you should refinance only if you can get a 1-2% lower rate than your current mortgage rate.

You should check if you could deduct points of the entire current loan off your taxes. Also, see if you can get a no-cost refinancing loan. This will reduce your loan cost to only the appraisal fee and if you can use the appraisal from the first refinance, you get to save more. The tax savings may also be enough to pay for refinance costs.

Thanks

blue · Posted: Fri Sep 15, 2006 3:52 am Post subject:

Hi Lionel Everett,

In addition to the points Helping_user has mentioned another way to find out if refinancing would be appropriate or not is to calculate the break-even time.

Let me give an example to explain it better:

First you calculate the total cost to refinance, suppose it comes out to be around $3000.
Then calculate your monthly savings on the new loan, let it be $200/month.
Divide the cost by savings, i.e. - 3000/200 = 15 months.

This is called the break-even time and if you are going to continue living in the house for a longer time period than the break-even time, as in this case for 15 months, then it is quite reasonable to opt for refinance.

Thanks
Blue

Guest

I refinanced out of foreclosure in June of this year and wanted to know how long do I wait to refi again. My home has allot of equity and my payment is $3,400 and my interest rate is 11.75%.

Guest

Hi,

You can refinance any time you find suitable rates lower than your current rate and also if the factors helping user and blue have mentioned are in your favor.

Also ask the lender if there might be any pre-payment penalties.

Thanks

Guest

How long until a lender will look at me after i started foreclosure, but was given a loan mod from my current lender?

Guest

It will take some time until a lender approves you for a loan. This is because your current lender has already declared foreclosure. This creates a negative impact on your credit score, though not to that extent as it would have been had the foreclosure actually taken place.

Caron

Hi Sheryl,

Lenders advise that a borrower should wait for at least 2 years after foreclosure is executed. Within this period, the borrower is expected to rebuild his credit status so that he can apply for home loan or any of credit in future and get benefited by securing a reasonable interest rate available in the market.

Even if the foreclosure is just being declared and the borrower pays off the loan prior to its execution, he may still have to wait for a number of months or perhaps a year or so. This however depends on the criteria that lenders put forward in order to approve a borrower for any kind of loan.

Thanks,

Caron.

Guest

We foreclosed on our home 4 years ago and would like to own a home again. how long will it take before we can get a loan to buy a house. We have cleaned up our credit but worried that we will get a very high interest rate.

Caron · Posted: Thu Aug 28, 2008 6:04 am Post subject: RE: mortgage after foreclosure

Hi Bailey,

Since your home as been foreclosed 4 years ago, and you've cleaned your credit, I don't think getting a loan will be difficult. As for the higher rates, well, it depends upon the credit score you have and what type of programs are available to you. Also, if you have a minimum score of 580, you'll be able to get an FHA mortgage. For other conventional loans at favorable rates, a better score of 680 and above are currently required.

I suggest that you start loan shopping. Otherwise you won't know whether it's possible to get a suitable loan offer now. You may also request for a no-obligation free mortgage quote from our community lenders. The lenders have a wide range of loan programs to offer. So, hopefully they'll be able to help you with a loan programs that fits you. And, once you receive the quotes, feel free to discuss the offers with our community experts in forums.

Good luck

Guest

My home was foreclosed on a year ago due to the adjustable rate became much higher then I can afford. Although everything else on my credit is in good standing. Because of the foreclosure will this prevent me from getting another home loan with a fixed rate in the future

Guest

Hi , i just forclosed my home 8 Days ago , but still want to keep my home , the person who was helping me , not returned my phone call so now i want to able to handled the case by my self and do not know what to do please could you give me some advice what i should do.

savior70 · Posted: Fri Apr 10, 2009 5:32 am Post subject:

Hi

Did you not work out any alternative plan with the lender to avoid foreclosure? Has the propety been sold off at the Sheriff's auction?

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