Equity and Refinancing After Bankruptcy
Just because you have filed for bankruptcy doesn’t mean that you have to stop looking for good financial deals. Obviously, you will be looking for a good refinance package, and so must decide between using your home equity to refinance your mortgage and finding some other means to raise funds.
You should realize that refinancing mortgage after bankruptcy is pretty much the same as taking out a totally new mortgage and you will obviously look for getting lower rate of interest while saving money during the lifetime of your mortgage. The more equity that you have in your home, the greater your bargaining leverage is.
For example, if your home is worth $100,000 and you have $80,000 in equity, you will be in much better shape than if you only had $10,000 in equity.
