Bad Credit Mortgages
Using a Cash-Out Refinance After Bankruptcy to Borrow from Equity
Next to Florida and California, New York is considered to have the most valuable real estate market in the nation. This is great news for New York homeowners who are want to borrow from their equity using a cash-out refinance after bankruptcy.
How Cash-Out Refinancing Works After Bankruptcy
In New York, cash-out refinancing after bankruptcy works just like the average cash-out refinance. Lenders will allow you to borrow up to 100 percent, and in some cases, 125 percent of your home’s value. Of course, the amount you borrow is minus what you owe on your current mortgage.
Getting Approved
The key aspect to getting approved for a New York cash-out refinance after bankruptcy is loan affordability. Because you will be borrowing additional money when you replace your old mortgage with a new mortgage, your payments are bound to be higher. You must be able to prove to the lender that you can afford to make the required payments on the loan prior to taking it out. If you don’t have the income or documentation to support this fact, you stand little chance of getting approved for the loan.
Finding a Lender
When shopping for a New York cash-out refinance after bankruptcy, it is essential that you find a good lender to handle the loan. You want someone who is reputable, honest, and able to offer you a fair rate and term regardless of your bankruptcy status. This may take some work on your part, but it will be well worth the effort that you put into it.
Making Payments
After getting your post-bankruptcy mortgage refinance, you will need to work hard to make your payments in a timely fashion. Your home is tied to this loan. If you fall behind or default, you run the risk of losing your property to the bank.
