Forget the headlines, the breaking news, and the latest acquisitions. I know you’re concerned with the bottom line, and that bottom line is you. Who cares if mortgage rates are historically low if you aren’t able to refinance. If you have an adjustable rate loan that is about to spike or been scoping out the possibility of lower mortgage rates, you have probably seen how hard it is to refinance lately.

In parts of California, if you bought a house with the traditional twenty percent down, you’re still not guaranteed to qualify for a refinance today. Prices are returning back to their “normal” values and mortgage loans are harder to obtain because of tightening credit standards. Nowadays, excellent credit is only good credit, and good credit is only mediocre credit. I know we’re home to Disneyland, but say goodbye to the days of Mickey Mouse Lending. If you want to refinance, you had better be qualified. 

So, What If You Can’t Refinance? Here are some ways you can still save:

Save Money with Loan Modifications
Lost your job? Suffered a financial hardship? Surprised by a significant change in your monthly mortgage? If you can present a substantial case to your lender, a loan modification is your next best option to a refinance. However, expect to meet a certain amount of resistance and get ready to “rumble” with your lender.  Lenders may be more receptive because of the current crisis, but they are also overwhelmed by the growing number of those who need help. If you can present a convincing argument, a lender can modify your loan to reduce the interest rate or loan amount.

Save On Taxes by Re-Assessing Your Property Value
Can’t refinance because you don’t have enough equity? After you phone your friends and family about how this crazy market has taken away your equity, make sure you call the county and let them know as well. If your property value has dropped significantly since you purchased your home, having your property re-assessed will lower your property taxes. The savings may not be as much as a refinance, but every bit helps.

If you’re facing a foreclosure or your home is in jeopardy because you can’t refinance, make sure you actively look for help. Speak to your lender and contact mortgage professionals in your area. For more information, also check out helpful resources such as Hope Now and California Housing Finance Agency’s Foreclosure Avoidance Program.

(4 votes, average: 4.75 out of 5)

 Loading ...