Interest rates falling usually means it's a great time to refinance, but even with decent credit you may not be able to.
It's always great to be able to refinance your mortgage. Especially, if it's a point or more lower. A move that could save you hundreds of dollars every month on your mortgage payment and over the long run, thousands of dollars in interest.
Trouble is not everyone can qualify.Tons of people are trying to refinance, but even homeowners with good credit and money in the bank are having trouble refinancing. Mainly because home values have fallen so much.
Many frustrated borrowers or trying to refinance and can't because they are upside down. The appraisals just aren't coming in at value. It's hard to understand when you have a high FICO score and plenty of assets to qualify, but not enough value in your home.
For those of you getting irate because you can't refinance get over it. It is what is. You will probably have to come up with the difference in order to refinance.
So, when you are going to try and refinance first, find out whether or not you even qualify. Underwriting standards are not what they used be and are becoming stricter everyday. You usually have to have 20% to 25% equity in your home and you may need a FICO score of at least 750.
Most lenders collect an appraisal fee upfront when processing a loan. So make sure you find out the the value before you start the process. Try Zillow to get an idea of the value of your home.
Do your homework before trying to refinance. It will save you time and money in the long run and remember not to get irate if it isn't possible. Hang in there it will sooner or later.
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