Hello we I am rebuilding my credit and can only get financed for 8% on a mortgage?

Question

how long do I have to pay a high interest rate until I can refinance for a decent rate? We didn't qualify for the first home buyer cause our bankruptcy was less than 2 yrs ago.

Answer 1

You're at 8% and rebuilding your credit. That implies your credit isn't that great. I would take the 8% and run.

When I was financed in the mid-1990's at 8.5%, with good credit, I thought that was good.

You could go back the the 1980's when people were getting financed at 13 to 15%, with good credit records.

Answer 2

Well with you getting that loan with a high interest rate it all depends on the program that you are being put on as to how long before you can refinance. It all depends on if you have a pre payment penalty or not. Send an e-mail to my partner at [e-mail] and see what she can do for you if you would like. Her name is Tami Good Luck.

Answer 3

I would not buy a home with that kind of rate. Shop around first for a better deal. In the meanwhile keep rebuilding your credit and make payments timely. If you can, pay off credit cards and notify the company that you want to cancel them. Cut them up and mail to the lender.

Answer 4

Do not cancel any credit cards that you have a good payment history on this will eliminate any good payment history you have with those cards but you keep the negative history. You can generally refi in about 2 years with a better rate but I agree with the person that says you should consider waiting to build your credit first.

Answer 5

We are in the same boat. They told us after 6 months we can refinance to get a better interest rate. Work on your credit and after six months see how better it is. Good luck.

Answer 6

8 % on a mortage is not bad. Usually you can not have credit after bankruptcy for 7 yrs. Different states may apply, not too sure.