Mortgage Refinance in Today’s Real Estate Market

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Freddie Mac’s most recent survey reports that mortgage rates continue to remain at record lows, allowing qualified buyers the perfect chance to snag affordable loans on very nice properties throughout the country.

Unfortunately, many prospective borrowers are still getting denied, thanks to strict lending standards that turn a cold shoulder toward all but the least risky of applicants. That said, low mortgage rates have proved incredibly valuable to existing homeowners who are interested in getting new mortgages that will either lower their monthly payments or allow them to pay off their home at a faster pace.

Big Upside for Some

Mortgage refinance is a lifesaver for many homeowners, who can’t afford the large monthly payments that come with 15-year plans. Thanks to low current rates, switching over to a 30-year plan can mean much smaller monthly mortgage bills.

This strategy has also been a wise choice for financially stable homeowners, who are focused on eliminating their mortgages faster while avoiding costly interest fees. By switching from a 30-year mortgage to a 15-year plan, they are able to side-step interest charges and buy their homes for less. This is especially helpful for seniors who don’t want to be saddled with a home loan after they retire. It’s also a nice option for people who have experienced financial growth in the years since they initially purchased their home, when they existed on a much tighter budget.

Some Unable to Qualify

To qualify for mortgage refinance, homeowners usually need at least some property equity. Unfortunately, a new report from Zillow suggests that up to one-third of all homeowners remain underwater, thanks to declining home values.

That said, if you are in a good position to refinance your mortgage, experts agree now is the time to do it. Just be sure to consider any expenses you might incur, such as closing costs and fees, which can detract from whatever savings you may enjoy.

By Ryan Lawrence (20 Posts)

Ryan Lawrence is a professional web copywriter and KingofHowto.com expert.