Question by The ADvisor: With the poor economy and financial market crisis, is now a good time to refinance the mortgage on my house?
With the interest rates dropping I think I could really save some money every month on my mortgage if I refinance, but are banks hesitant to lend right now with the financial crisis? What are your thoughts? Thank you!
Answer by Pengy
If you financed 100% then you basically have no chance of refinancing as your homes worth has gone down. If you are not in that situation and the refinance rate is at least 1% lower than what you have then you will save in the long run.
What do you think? Answer below!
1. Banks are going to want 20% equity in your house.
(10% with excellent credit).
2. Interest rates are going up and may not come down for years.
There are a few things to consider ,if you have a good payment record this is the first thing ,however it also depends how much the property is worth now ,I would suggest you speak to a reputable lender in your area ,and definitely if the above 2 things are fine then refinance immediately for a cheaper interest rate.
If you have very good credit and a lot of equity in your house, you can probably refinance.
Yes banks are willing to lend right now just not at the levels in the past. You have to have good credit and need to prove your income.
I think you should refinance today..