Refinancing Advice For House Values
(Bristow, VA, USA)
Ask Kate: Refinancing Advice For House Values Kate, I need refinancing advice regarding dropping house values. If mortgage interest rates go down, I'd love to take advantage of them. I have a primary mortgage of about $343,000, and another $78,000 in a traditional Home Equity.
But I'm worried if I try to refinance to a lower rate, I'll have to pay PMI (private mortgage insurance) or won't get a loan at all because my house value has dropped so severely.
Kate Answers: Refinancing Advice For House Values
Dear Todd, I understand the frustration being felt by homeowners needing refinancing advice.
Although any homeowner's appraisal is subject to current market values, there are steps you can take to make sure you get the highest appraisal possible. Read how at 7 Tips For Highest Property Appraisals
Keep in touch with my weekly review of mortgage rates
with the ease of one stop viewing.
Get a feel for the market. My advice is to not try to get the lowest mortgage rates. I have witnessed many borrowers miss a great deal because they held out for the bottom of a market that never came.
PMI, never a favorite among home owners or buyers, does have an advantage in that it allows a borrower to obtain a mortgage with less equity. So don't cut off your nose to spite your face if PMI helps you get a stable 30 year fixed rate mortgage
that can still save you money.
I recommend also to keep in touch with your actual mortgage lender, the one to whom you make your mortgage payment regarding a refinance deal you might be able to make after plummeting values. Read what Donald Trump said
about having the power to make a deal with your bank.
And last but not least, pay attention to your credit. Strong credit scores
have never been so important as they are today.
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