5 Tips For Refinancing When Your House Value Has Declined
Do you want to refinance your home in order to save money on your mortgage, but your home value has dropped? Many homeowners in your position think that they cannot or should not refinance when they are in this situation. But it actually makes more sense to try to save money on payments when your home is not worth as much. And you may still be able to refinance through a little diligent work. Here are five quick tips to make it happen.
1. Act Quickly.
If home values haven't yet dropped too much, you may want to act quickly to refinance when you can. Remember that you can refinance even if the property has less value as long as it has more than what you need. Many lenders will refinance up to 80% or even 85% of the home's equity, so you may be able to squeeze in a quick refinancing option.
2. Appraise the Home.
Before you decide whether or not to refinance, have your property professionally appraised. You will likely need to have this done for a lender anyway. The appraiser will give you the independent information you need to avoid undervaluing or overvaluing your home at this volatile time. They may even offer guidance on boosting its appraisal.
3. Talk to Your Lender.
Be sure you begin by communicating with your current lender. If you have a good history of payments and a solid credit score, they may be more interested in finding ways for you to refinance and keep you as a customer. Their own internal guidelines and programs may offer other ways to lower your payments.
4. Ask About Programs.
Modern homeowners have a variety of government-backed and lender-directed programs that may help them refinance in difficult situations. Ask lenders about programs that you and your property may qualify for.
5. Kick in Some Cash.
Homeowners who aren't in financial dire straits and want to save money through a refinance may choose to spend some of their own cash to make it work. If the discrepancy between what you can refinance and what you owe isn't too large, you could reduce the amount you need to borrow to make it work.
Want to know more about refinancing a property that has declined in value? Act quickly today by learning more about your options. You may have more choices than you realized. And the effort you put into making this happen now will surely put you on a solid financial footing for years to come. Talk to a local refinancing company, such as Choice Mortgage, to learn more.