Homeowners and potential homebuyers have seen various aspects of the housing market that may look either attractive or may have dissuaded them from pursuing options like buying a home or refinancing their current mortgage, as there are conditions that are presently in the housing market that have left some consumers in a position where they feel a great deal of uncertainty is present and may remain in the housing market for some time. Problems like devaluation and current issues related to our national credit rating being downgraded have some homeowners wondering whether home prices will continue to drop and interest rates to begin to increase, but of course there are those who feel that recent events that have occurred in our nation may have a much smaller impact than some have predicted.
Yet, homeowners who are looking for a more affordable mortgage payment do still have some traditional options, but due to the fact that there are fewer buyers in the market, there may be opportunities for homeowners to negotiate a more affordable mortgage if they are facing financial stress and are in need of options like a home loan modification. Understandably, homeowners do still have affordable rates which may be used to refinance for more affordability, there are those who question whether this is right at the time or if they can qualify.
It goes without saying, homeowners who can get a substantially lower rate on a home loan have benefited from refinancing in the past due to the fact that any costs that may be incurred, like closing costs or fees, will be outweighed by the reduction in their minimum mortgage payment and, in some cases, homeowners who may refinance for a shorter mortgage term could stand to save thousands when all is said and done on the home loan obligation. Yet, longer mortgage terms may lead to higher monthly payments, which at the present time is not something that some homeowners are either willing or able to handle.
However, when it comes to working with homeowners, there are some banks who may be in a position where they have numerous homes simply sitting empty and are in a situation where homeowners who are facing financial distress may be able to take advantage of current programs that are in place to help them stay in their home. While this will not always be the case, there are some reports that homeowners may be able to avoid the loss of their homes through a variety of programs that go beyond simple modifications, if financial distress is present. Yet, it will depend on a homeowner’s situation and their servicer, but there are some banks who are going to be able to offer in-house assistance options, again like modifications, to homeowners who may not qualify for federal mortgage payment assistance programs.
While the opportunities to refinance to a lower rate are still in place for some homeowners, meaning those who may qualify and can’t afford to do so do still have opportunities to take advantage of lower home loan rates, when it comes to refinancing options for homeowners in need many of the major financial institutions who are charged with helping these homeowners may be willing to explore further options beyond simple modifications since there are fewer homebuyers who are seeking out the homes that are currently sitting empty on the books of these institutions. Keep in mind, there are no guarantees when it comes to these assistance plans, and if a homeowner is simply looking to refinance, a great deal of research needs to be done so that they will know whether it will be in their best financial interest. Yet, housing is one of the areas of the economy that is slow to recover, but homeowners who are looking for more affordability on their home loan payment may be able to talk with their servicer or a housing counselor to explore options available for their particular situation and find a lower monthly mortgage payment as a result.