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If I had a bankruptcy 4 years ago, will that change the interest rate that I get?

by glenn.h91 from Mckenzie, North Dakota. Jun 13th 2016 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

The interest rate is based on the MID credit score of all borrowers, the loan to value, the property type, and the loan amount.. so technically, no.. the rate is not higher because of your BK, but because you have a BK, it's likely your score will be lower, which will result in a higher interest rate.. Understand that when it comes to FHA, there is little different in the interest rate when comparing a 750 borrower vs. a 650 usually about 1/2% or so.. but when it comes to conventional financing, it could be rather costly if you have lower scores.. not only is the interest rate higher, but if you are putting less than 20% down, you will have to pay monthly mortgage insurance and that premium is also based on your credit score.. But if you want to know exactly where you stand, I suggest you contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Jun 14th 2016
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