Another shaky month in the real estate industry with so many conflicting reports on the news. Every day, the experts speculate about what will happen next. What will happen next? For many consumers, the ARM (Adjustable-Rate Mortgage) was the only answer to their home loan needs. A couple of years ago, with home prices soaring in California, it seemed like a good idea. It was a way to get into a first home, or to refinance in order to take out some equity for various necessities, e.g. home repairs, appliance purchases, etc. Many were reassured that they could always refinance when the time came for the monthly mortgage payment to reset. And many families will be able to refinance because they still have equity in their homes and they still have good credit. They are the lucky ones. Those who are in these ARMs are now looking to refinance into a fixed rate mortgage with steady payments because the time has come for their loans to be recalculated.
It is still possible, folks!! That's the good news. There are still good loans out there-it's true that lenders are tightening their belts and re-establishing standards that were in place not so long ago. The loan process may not be as speedy as it used to be, because many lenders are dropping out, leaving only the most solid and reliable companies to service the public's needs. That means these companies now have more loans to process and the same amount of staff to process them. Things will take a little longer. For those who managed their loans well-and still have equity in their homes-now is the time to refinance. What's the next step?
How do you know who the good companies are? It's essential to establish what is important to you. Do you want to work with your local bank? Great!! They're right in your neighborhood, and for many people this is a reassuring feeling. What about a broker? The advantage of a good broker is that they have several, if not many, lenders to choose from, so they can shop around for a loan that meets your financial needs.
There are many excellent reliable loan officers out there willing to help direct you through the maze of home financing.
- Find the one that answers your questions-and who will research your questions if they don't have an immediate answer for you
- Find one that will guide you through the process of home loans/refinancing
- Find one who has the vision to evaluate your credit standing for future financing
Refinancing is available-even in today's market!! Please don't stay in a loan that's too expensive for your lifestyle simply because the media has been telling us that loans aren't being funded these days. Find a reliable real estate loan professional and find out for yourselves what your options truly are!!
"Knowledge is power." Francis Bacon 1561-1626
;)
;)
Hi Deborah. For those that still have equity and decent credit, this is a great time to refi. Unfortunately, for those who bought with zero down within the last couple of years, it may or may not be an option.
I wish you well, in business and in life. Keep in touch.