Should You Try to Refinance Now – Yes!
These are unprecedented times, and unprecedented low interest rates set forth by the Federal Reserve, and that means that there are lots of people looking to capitalize on that fact because they think they may be able to refinance their home mortgage at a much lower rate. One catch though is that lots of these people will be turned down, because either the banks are lowering their loan approvals, or many people may not have good enough credit to be able to justify getting a lower interest rate. That doesnt’ mean people aren’t trying though.
I know this for a fact. I tried to refinance our home mortgage loan for this very reason, and I was on hold for twenty minutes with my bank, and they then told me that I had to call one of two sister companies because they were so inundated with requests to approve refinance loans because of the current economic climate and times and the thought that many people think they may qualify for lower interest rates on their home. The kicker and the sign of the times when I was on the phone with the rep was that he instantly asked me if I was behind on my payments or in need of assistance.
I don’t know if you answer “yes” that makes you any more likely to get a refinance, but apparently they had to ask that question. I read the other day that you have to be at least 60 days delinquent on your mortgage loan in order for banks to put you on any sort of a federal assistance wait list, whether that is still true I don’t know, but I know that the government is helping record numbers of people out of jams who have fallen on hard luck or the times and need help.
If you are in the boat where you think you are ready to refinance and might qualify for a better rate out of all this hoopla, call your current bank, or take up one of the numerous offers you get in the mail and see if they can run your credit and your application to see if you might qualify for this. Sometimes what you need is a decent amount of equity built in the home, and the room for improvement on the interest rate, and of course the better your credit and payment histories, the better your chances of getting that coveted awesome interest rate. My problem and the reason I was turned down was that we didn’t yet have enough equity built in the home to be able to qualify.
