A Look at Refinancing Your Mortgage
September 22, 2011
An article in this morning's Wall Street Journal was entitled "Refinancing Our Way to Recovery". The writer of the article, David Wessel, suggests that by changing some of the regulations that limit homeowners' ability to refinance and cutting their monthly payments, monies would be available for consumers to put back into the general economy.
A chart in the articles suggests that "Roughly 28 million households have mortgages with interest rates above 5.1%. Of that 5.1% 19.9 million homes have equity and 8.1 Million owe more than their home is worth.
The roadblock to refinancing has often been the present appraised value of the property. Presumably when it is cited that 19.9 million homeowners have equity, it is also presumed that they will have enough equity left after a reappraisal at current value. If not, they are in the boat with the upside down homeowners. From my perspective, this is the barrier to a run on refinancing at the current mortgage rates. It does seem sad that the rates at 50 year historic lows can not be available to folks who already own a home. The writer of the article suggest that it would be worthwhile for the institutions that govern the lending laws taking a serious look at
making refinancing available within the constraints of the current market.
An article in this morning's Wall Street Journal was entitled "Refinancing Our Way to Recovery". The writer of the article, David Wessel, suggests that by changing some of the regulations that limit homeowners' ability to refinance and cutting their monthly payments, monies would be available for consumers to put back into the general economy.
A chart in the articles suggests that "Roughly 28 million households have mortgages with interest rates above 5.1%. Of that 5.1% 19.9 million homes have equity and 8.1 Million owe more than their home is worth.
The roadblock to refinancing has often been the present appraised value of the property. Presumably when it is cited that 19.9 million homeowners have equity, it is also presumed that they will have enough equity left after a reappraisal at current value. If not, they are in the boat with the upside down homeowners. From my perspective, this is the barrier to a run on refinancing at the current mortgage rates. It does seem sad that the rates at 50 year historic lows can not be available to folks who already own a home. The writer of the article suggest that it would be worthwhile for the institutions that govern the lending laws taking a serious look at
making refinancing available within the constraints of the current market.
posted by shirley harry at 8:40 AM
0 Comments:
Post a Comment
<< Home