PMI

The PMI is another factor to be concerned about while purchasing mortgage loans after bankruptcy because of the poor credit history. It is better to avoid a mortgage with 2 to 3 years of prepayment penalty. The interest rate on a mortgage after insolvency could be up to 12 points higher than on a regular mortgage. After insolvency, there are three things a debtor will need to deal with: credit history before the bankruptcy, the cause of the insolvency, and how to handle home loan finances after bankruptcy.