With interest rates hovering at 50 year lows, there are a great many homeowners out there who are ignoring the possibility of refinancing because of what they’re reading and seeing in the news.
Home Values are Down – Most Underwater – There’s been a lot of news coverage of homeowners considering walking away from their mortgages because the home is worth less than they owe. If you are indeed in a situation where your home is worth less than the mortgage balance, then refinancing would not be something to consider right now. But, many areas have fared better in home prices, and it is in your best interests to get some help in getting an estimate of your home’s value before ruling out refinancing. This is especially true if your mortgage is at least 5 or more years old, as rates were higher, and you may have more equity than you realize.
It’s Impossible to Get Mortgages or to Refinance Now – It’s true that rules have tightened a lot. But,mortgage lenders make money by loaning money. So, shutting down lending hurts their business. There is mortgage money out there, especially for those who have good credit and can prove income for repayment.
While you may find that you aren’t in the right situation currently to refinance, if you have any doubts at all, come in and see a mortgage broker and look at options. It would be a shame to miss the opportunity to refinance, reducing your interest rate and payments.