Bankruptcy has a negative impact on your credit score. It drops your rating below 100 points and sometimes even more. Thus, from an excellent credit rating, your score instantly moves down to a poor rating. After this event, it takes about 10 to 12 years to regain your lost credit.

After bankruptcy, if you are thinking of applying for a home mortgage, then it would be difficult. This is because no mortgage lender would want to take a risk by giving you a loan, knowing the fact that you have disclosed bankruptcy.

Nonetheless, the good news is that you don’t have to wait for 10 years to qualify for a home mortgage loan. You can get mortgage even in four years’ time if you work on improving your credit score carefully.

After four years, when your credit score begins to recover, you can apply for a home mortgage loan. However, since you have a record of a filing bankruptcy and not very impressive credit score, the mortgage lenders would offer you a loan quote but at a high interest rate. To choose the best loan option, it is advised you compare your options.

Using a mortgage interest rate calculator is the best way to get an overview of your monthly payments on each loan with respect to the interest rates. With this calculator you can compare your choices and make an informed decision.

For this, all you have to do is enter the loan amount, the term over which you plan to pay back the loan and the interest rate. Once you plug in the numbers, the mortgage interest rate calculator will show you the monthly payment you are expected to pay. If the result is desirable and in your expected payment range, then you can proceed with it otherwise you can look for other feasible mortgage loan options.

In addition to this, by using this interest rate calculator, you can also work out how much less or extra you would have to pay on your mortgage if the lender decides to change the interest rate in the long run.