Home Refinance Possible despite Lukewarm Real Estate ReportBy Nathaniel Hutchinson on May 29, 2012 with 0 Comments
According to the S&P/Case Shiller composite index, average home prices ascended for the second consecutive month, a potential sign that the housing market might be inching toward a recovery.
Unfortunately, sales remain stagnant in most parts of the country for a variety of reasons, including tough lending standards and buyer reticence. What’s more, although the S&P’s index indicates that home values are on the rise; they still remain far lower than what they were before the real estate crisis. They also remain much lower than what many economists had hoped, and most experts aren’t expecting a significant improvement anytime soon.
Hope for Refi Applicants
Low mortgage rates have made home refinance ideal for numerous homeowners; however, many have had trouble taking advantage due to lost equity associated with falling property values. That said, it’s important to remember that the S&P/Case Shiller composite index only takes an average based on 20 major metropolitan areas. If you live in a city that is experiencing job growth and economic improvement, your home may be worth more than you think.
If you currently have a 30-year mortgage, you can save a bundle of cash by switching to a 15-year plan. Low current interest rates can also help you lower your monthly payments if you are currently struggling with a 15-year loan. By switching to a 30-year plan, you can free up cash to help pay for school loans or credit card debt.
Unfortunately, to get approval, you must have enough home equity to satisfy lenders. If you live in a depressed housing market that has seen its share of foreclosures; this probably won’t be the case.
Still, it may make sense to contact lenders to find out if you do qualify. Getting a new mortgage makes sense in today’s real estate market, whether you are struggling financially or enjoying economic prosperity. After all, low mortgage rates mean cheaper home loans for those who have what it takes to get a lender’s stamp of approval.