Now is the best time to think about refinancing your mortgage. The rates are currently at an all time low and our government is also working on new ways to help homeowners save even more money on their current mortgage plan. And while it is slow-going, our nation's economy, as well as the unemployment rate, is both showing signs of improvement which is always good news for the housing market and mortgage rates. However while this is always good news when it comes to the world of refinancing, being able to lock in a good deal can be very challenging for some homeowners.
The reason why this can be such a challenge for some individuals is because low home appraisals or strict lending standards can cause some issues when it comes to allowing some homeowners to refinance. Even if a person has great credit and assets to fall back on, they can still have a difficult time getting a mortgage refinanced since banks have been holding back on lending.
There is still good news to be had out there if you are a buyer or refinancer, you do have power when it comes to your mortgage. By making improvements to their current credit situation and learning more about all of the new government programs for homeowners that are available, they can greatly improve their chances of getting the refinance deal that they have hoped for.
These days one of the most promising details when it comes to refinancing is the low interest rates. The current average interest rate for a 30-year fixed rate mortgage is right at 3.84% is lower than the national average in March at 4.22% and is the lowest in 60 years seen by the housing market.
If you are a homeowner with an interest rate above 4.5% and have purchased your home before May 2009, you may be eligible to refinance with better terms. The recent drop in interest rates has caused there to be a stir in potential borrowers all over the nation. It has been said that over 20 million United States homeowners are currently paying a refinance rate of at least 5% or more while around 12 million homeowners are paying anywhere from 4% to 5%.
While these new rates mean relief for many homeowners, it isn't the case for everyone. There are many people who are unable to refinance because they currently owe more on their homes than the property is actually worth. However relief may be in sight for these individuals as many national banks are now required to refinance to certain borrowers who are in the same type of situation as a part of a $25 billion dollar settlement set forth by the government. This settlement is part of an investigation that is looking into questionable foreclosure practices in our country.
In order to qualify for this new government program, homeowners will need to be current with their mortgage and already have a loan through one of the five banks that is involved in this settlement program. These banks include Bank of America, Citigroup, J.P. Morgan Chase, Ally Financial and Wells Fargo.