What do you mean I can't refinance?

Wow, look at these great mortgage rates! It is a great time to refinance!
With this being the case, it brings up an un-settling fact for many people! Either it may not make sense to refinance or they simply can't!
This all comes down to your homes value and what it will appraise for. Gone are the days of buying a home and the appreciation begins. If you just purchased your home at market value and did a 100% loan, refinancing won't be so easy. Your need to have 5% equity in your home to refinance and this equity is simply not there for many homeowners. With people unloading their homes at reduced prices, comparable sales are hurting you. You may have purchased your home for $140,000 and then identical homes have sold in your neighborhood since for $130,000! These are comparables they use to appraise your home and the lender will not be able to refinance based on these current sales. Many are finding this out and are frustrated! It is frustrating for lenders like us as well. We see great rates and an opportunity to save our client some money and then we must tell them they are out of luck. They want the 5.625% rate when they are paying 6.625% or 7%. Instant savings would be there, but they can't grab it!
If you put money down on your home, received a great deal, or have been in your home for awhile; you are more than likely ok.
Just bear with us when it comes to applying for a refinance. It isn't because we don't want to help. The market is just out of our control at this point. We want to make sure the savings justifies the closing costs you must pay, add in how long you plan on staying in the home, and take a solid look at the homes current value. After evaluating these factors, we can give you a solid recommendation on what to do! If you are unsure, just consult a lender you trust will evaluate your situation properly. Don't go with someone that will try to squeeze the numbers to make it work and then find out later that it won't! All this does is waste your time, money,and get your hopes up! Who wants to pay for an appraisal that says, sorry you are out of luck! I sure wouldn't!

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"