Most folks who declare bankruptcy think that financial doors might be closed to them for a while. But, in reality, it is possible to get a loan, refinance a mortgage or get credit after bankruptcy. And it's a smart idea, too! Refinancing your home has a lot of benefits, like:

LOWER INTEREST RATE

If it's been a while since you got your mortgage, you may be surprised at today's low rates. If you qualify, you may be able to get a lower interest rate than the one that's on your current loan, which means you'll save money over time. Find a lender that's willing to work with your special circumstances, and be sure to compare different loans to get the best rate. Although it's a little harder to qualify for a low rate after declaring bankruptcy, it is possible.

LOWER MONTHLY PAYMENTS

If you choose to refinance your mortgage for a longer term, you may lower your monthly payments. For example, if you currently have 20 years left on your mortgage, and you refinance to a 30-year loan term, it's likely that your monthly payments will be lower than what you currently pay because you'll be spreading the same loan amount over a longer period of time. For most people, this helps free up some cash and make bills more manageable.

CASH IN YOUR POCKET

Need some extra money each month? Want to pay off some bills, remodel your home or make some house repairs? If your refinance your home for a larger amount than you currently owe on your mortgage--known as a cash-out refinance--you'll have that extra money in your pocket, which you can use for anything. For cash-strapped folks who need to borrow some money, this type of refinancing can help you get back on your feet financially. Here is a list of recommended Mortgage Refinance Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.

There are lots of smart reasons to refinance your mortgage, and it is possible--even after bankruptcy--if you find a lender willing to work with you. To find a loan company, try local banks and lenders, and search the Internet.

See our list of lenders if you are interested in Buying a Home After Bankruptcy. We also have information regarding 100 Percent Bad Credit Mortgages.