While the US housing market continues to be on shaky ground, financial investors and lenders are benefiting from the situation by providing refinancing alternatives to many home owners who are facing the risk of foreclosure. Mortgage rates are on record lows and refinancing has now increased.
Mortgage refinancing enables many homeowners to lessen their monthly premiums or reduce their loan period from 30 to 15 years to eliminate their debts quicker. Little do these homeowners know that they are actually improving the business for mortgage brokers and bankers and picking up the slack in home sales.
Bob Gardner, a representative of Legacy Mutual Mortgage, estimates that refinancing now accounts for 50% of the loans. He further adds that the company has now opened up its doors to employment, increasing jobs for the locals.
However, loan companies now call for more financial documents to demonstrate income and assets and also high credit ratings. The preferred credit score has been raised from 650 to 760, even for government backed loans. To improve chances of affirmation and get the best refinancing rates, the score shouldn’t be lesser than 640.
Mortgage refinance business booming
