Q. Can you tell me what the likelihood is, as a current homeowner but having filed bankruptcy in the past year (keeping my home and my car and those obligations current), that I could get a new loan with the same mortgage company to move into a condo. In other words, do you think my current mortgage company would be able to extend a loan to me? Also, will the amount of my proposed loan be affected by the bankruptcy? Will I qualify for a smaller loan even if I may be able to make a substantial down payment?

A. Lenders consider each loan on a case-by-case basis. Your mortgage company may be willing to loan you money for a condo, but you shouldn't expect any special consideration because you are a current customer. If you apply for a new loan, the lender will evaluate your credit report and credit score as if you were a new customer. While they will consider the fact that you've kept your mortgage and car payments up-to-date, they will reflect your bankruptcy filing, too.

You don't say how long you've had your current mortgage, or what interest rate you are currently paying. But there are two reasons a new loan will almost certainly come with a higher rate:

• Mortgage rates have been volatile over the past two years. The average cost of a 30-year fixed-rate loan -- the most popular way to finance a new house -- was as low as 5.75% at one point and close to 7% this past summer, but is now at about 6,2%.
• Because of your bankruptcy, you probably won't qualify for any lender's best rate. So expect to pay a penalty of at least two or three percentage points. The worst case is that your credit report is so badly damaged that you'll only qualify for what's called a subprime loan, which charges high-risk borrowers as much as 13% or 14%.

How much you'll be able to borrow will also depend on your credit score and the appraised value of the condo you want to buy. Having a substantial down payment will help, possibly a lot, because statistics show the more you put down, the less likely you are to default.

The bottom line: Apply to four or five lenders, not just your current mortgage company. Compare the rates and other costs to find the best deal. But don't be surprised if your new loan comes with a significantly higher interest rate.