| While you weren't watching ... ... mortgage rates were tumbling
With long-term mortgage rates sinking to their lowest level since March 2004, it looked like one of those golden opportunities to refinance the home or condo this week.
But many who rushed out to their banker or mortgage broker discovered that it is much more difficult to borrow money than it was even a few months ago.
The real estate crisis dragging down the rest of the U.S. economy has frozen the market for many borrowers. As prices fall and lenders wallow in a sea of losses, only those with gold-plated credit ratings and ample equity in their homes are sailing through the application process, mortgage bankers said.
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Checklist: Reasons to Hire an Appraiser
Real estate appraising is the evaluation of property including the land, the dwellings and all the features on it. Although everyone knows it is necessary to appraise real estate to sell it, there are many other reasons people would contact a real estate appraiser. Establish value to buy insurance. Settle insurance claims. Establish market value to sell a home or buy new property. Establish market value to refinance or use for collateral on another loan. Assess current value to get rid of obligation to buy property mortgage insurance. (If value has risen, owner's percentage of equity in property may have increased enough to eliminate the lender's requirement to pay for property mortgage insurance.) Reduce property taxes.
Low Interest Rates Spur Mortgage Refinancing
Homes sales may get a boost when the fed's recent interest rate drop translates into mortgage rates. The cut will make it easier for many people to get into a new home and will also enable people to refinance to avoid future hardship. Several loan officers and mortgage lenders all say the same thing -- now is the time to refinance your home. But before you do, consumers need to understand the process is not cut and dry. Loan officers around the valley say more and more homeowners need to look into refinancing to take advantage of the low interest rate. Different loans can either lower your monthly payment or even shorter your term But it's not that simple. In order to refinance, you have to have decent credit and have some equity built up in your home.
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