How To Get The Best Refinance Deal
The best time to start thinking about refinancing your home may be right now
. Rates are currently at an all time low and it is still unclear as to how long these great rates will last. Since the economy and the unemployment rate are both slowly improving, so too will the housing market, which may mean increases in mortgage rates soon behind. It may be challenging for some to lock in a good deal, here are a few reasons why
The challenge for a lot of homeowners these days is getting an appraisal value to meet what they actually paid for their home before the housing crisis began. To add more fuel to the fire, sa lot of banks have had to stop lending due to all the bad mortgages they have on there rosters.. Even if a person has great credit and assets to fall back on, they can still have a difficult time getting a mortgage refinanced since banks have been holding back on lending.
There is still good news to be had out there if you are a buyer or refinancer, you do have power when it comes to your mortgage. By making improvements to their current credit situation and learning more about all of the new government programs for homeowners that are available, they can greatly improve their chances of getting the refinance deal that they have hoped for.
Obviously, the best reason for refinancing is getting in on these historically low interest rates. The current average interest rate for a 30 year fixed rate mortgage is at 3.84% is lower than the national average in March at 4.22% and is the lowest in 60 years seen by the housing market.
If you are a homeowner with an interest rate above 4.5% and have purchased your home before May 2009, you may be eligible to refinance with better terms. The recent drop in interest rates has caused there to be a stir in potential borrowers all over the nation. It has been said that over 20 million United States homeowners are currently paying a refinance rate of at least 5% or more while around 12 million homeowners are paying anywhere from 4% to 5%.
Some lucky people have been able to take advantage of these great rates as well as refinancing relief had for some, but it's certainly not been the case for most people unfortunately. Some may not be able to refinance because they are what is termed "underwater," which means they owe more on the home than the current value of the property. However relief may be in sight for these individuals as many national banks are now required to refinance to certain borrowers who are in the same type of situation as a part of a $25 billion dollar settlement set forth by the government. This settlement is part of a government investigation that seeks to find out which banks have been practicing questionable foreclosure practices.
To qualify you must be current on your mortgage payments and have a loan through one of the banks that are involved in this settlement. There are 5 banks including Bank of America, Citigroup, J.P. Morgan Chase, Ally Financial and Wells Fargo.
Copyright (c) 2012 Padducah Bank
by: Jed Maguire
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