What Makes it Hard to Refinance

What Factors Affect Your Ability to Refinance?

There are plenty of people who want to refinance their home and believe that they don’t need to re-apply for a new mortgage loan.  The fact is that every time you want to adjust your mortgage loan with a bank you will need to reapply for that new loan.  So the question has to be asked, “What makes it hard to refinance?”.    The following conditions can make those circumstances difficult.  They include:

1.  Unemployment.

2.  No available cash reserves in the bank.

3.  Career change without 2 years of employment history -Consult one of our LendPlus Loan Agents on this one.

4.  You no longer have equity in your home because it has been lost due to the housing value declines or you simply just don’t have any equity.
It should be noted that there are some new loan programs like the one called HAFA which could help you in refinancing that are designed for people who have no equity but make their payment on time. Talk to one of our loan agents to get the specifics on this program and any other program that may come along.   

If can’t quality for a refinance because of one of the factors above, there is still hope to gain equity and achieve long term savings. If you pay at least one extra payment a year to the principle, it will reduce the average 30 year mortgage down to 17 1/2 years which is a huge savings in interest payments. If you can make 2 extra payment a year toward principle reduction, you can knock your mortgage payoff down to just under 13 years.  Consult with one of our seasoned loan officers and they can run the figures for you.  Call us today and we can help find a strategy that works for you: 800-379-1328