Should you use points to lower your mortgage interest rate? The answer is a resounding "maybe." A few important factors need to be considered first.
For a person with a mortgage looking to refinance after a bankruptcy, there's good news and bad news. The good news is that you can refinance your mortgage in as little as two years after filing for bankruptcy. The bad news is that two years seems like an eternity in our fast-paced world - and some loans require at least three years. But if you don't mind a little perseverance, discipline, and a two-year wait, here's how you can make it happen.
Change happens. Maybe you bought your home right after college, before you had a decent credit history, and didn't receive the best interest rate available. Perhaps mortgage loan rates were high when you had to relocate to a new city. Interest rates can change dramatically over the years. Taking advantage of a lower rate through a mortgage refinance can have an equally dramatic effect on your monthly payments and on the interest you'll pay over the life of your loan. When your circumstances change, you can change with them.