Is It Time To Refinance?

From the Chicago Tribune:

Mortgage rates are down and you’re not going to bother trying to sell your home anytime soon. Should you spend the money to refinance and lower your payments? Certainly, a lot of people think they should refinance.

•Even if you don’t need private mortgage insurance now, you may need it in a new mortgage because falling home values are weakening some equity positions below the 20 percent threshold.

In a depreciating market, they just haven’t amassed enough equity and may find the rate they qualify for is, in fact, higher than the current rate, lenders say.

“Credit scoring has become such a huge deal with the rates [consumers] can get,” said Steve Molitor, vice president of PHH Home Loans, Evanston. Molitor recently had a customer refinancing his home with a very respectable credit score of 739, and found that his rate inched up ¼ percentage point because his score was not 740.

Lenders also advise customers to consider refinancing their adjustable-rate mortgages into conventional, fixed-rate products since rates have dropped.

Mortgage bankers also recommend that consumers shop for a lender, starting first with the company that holds the current mortgage.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (, he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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