The time to refinance could be now!
Even if your adjustable rate mortgage won’t reset until months from now, this could be the best time for you to refinance. Home values are sinking and eating up the equity in your home, so the longer you wait the harder it could be to refinance.
If your loan-to-value (LTV) is 80% or lower you will typically have the most options for a loan and best rates, depending upon your credit rating. Once you reach 85%, 90% or 95% LTV, the loan options become less and the interest rate rises. If it ends up you owe more on your house than what it is worth, your options are virtually gone. The lenders who were eager to give loans with 100% LTV are either out of business or have turned away from these types of high risk loans.
The foreclosure rate is predicted to rise in 2008 and most of 2009. Banks, not wanting to hold on to these homes will more than likely sell them far below their actual value. This will drag down the values of homes in many areas even further. To top it off, lenders are scrutinizing appraisals closely and appraisers have become more conservative on their reports.
If you are fortunate enough to live in one of the areas in Denver where home prices are either stable or rising, you can afford to wait before refinancing your loan. But, if you aren’t in one of these areas, you need to consider refinancing before you lose more of the equity in your home.
A review of recent home sales in your neighborhood will help you get a sense of values and price trends. Ask a realtor if he or she would give you an estimate of value for your homes in your area. Once you have an idea of what your home is worth divide what you owe by the value and it will give you your loan–to-value percentage. If values are falling like a rock, it is definitely time to refinance.
If your decision is to refinance your mortgage, please do not hesitate to call so that I can help you find a loan that fits your financial situation.
Academy National Mortgage Corporation
Denise Wing C.E.O.
Certified Mortgage Lender
303-987-0622
If your loan-to-value (LTV) is 80% or lower you will typically have the most options for a loan and best rates, depending upon your credit rating. Once you reach 85%, 90% or 95% LTV, the loan options become less and the interest rate rises. If it ends up you owe more on your house than what it is worth, your options are virtually gone. The lenders who were eager to give loans with 100% LTV are either out of business or have turned away from these types of high risk loans.
The foreclosure rate is predicted to rise in 2008 and most of 2009. Banks, not wanting to hold on to these homes will more than likely sell them far below their actual value. This will drag down the values of homes in many areas even further. To top it off, lenders are scrutinizing appraisals closely and appraisers have become more conservative on their reports.
If you are fortunate enough to live in one of the areas in Denver where home prices are either stable or rising, you can afford to wait before refinancing your loan. But, if you aren’t in one of these areas, you need to consider refinancing before you lose more of the equity in your home.
A review of recent home sales in your neighborhood will help you get a sense of values and price trends. Ask a realtor if he or she would give you an estimate of value for your homes in your area. Once you have an idea of what your home is worth divide what you owe by the value and it will give you your loan–to-value percentage. If values are falling like a rock, it is definitely time to refinance.
If your decision is to refinance your mortgage, please do not hesitate to call so that I can help you find a loan that fits your financial situation.
Academy National Mortgage Corporation
Denise Wing C.E.O.
Certified Mortgage Lender
303-987-0622
posted by Academy National Mortgage at 7:43 AM
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