Thursday, January 22 2009
There is good news for the Tri-State real estate market. Even though credit lines have been tightened some what, homeowners in the Tri-State have not been subject to a bubble bust with declining home values as in other areas of the country. As per Tonya Westerfield with Old National Bank “Tri-State homeowners are in a better position than many areas of the country to refinance, mainly because the housing bubble, while deflated, hasn't burst like so many other regions. “
Please call me at 812-499-9234 if you need any assistance in refinancing your home.
Tri-State homeowners sitting better than others
For many homeowners nationwide, that surprise is a denial of their refinancing.
Wednesday, I checked to see if that was also the case in the Tri-State.
Interest rates on a 30-year fixed mortgage recently dropped to a historic low, below five percent, but for anyone looking to refinance, there's a big catch.
"Credit has just tightened in general, all kinds of lending," Teri Hollander Albin with Hilliard Lyons said.
Getting credit is only half the story.
Many homeowners are finding the value of their house has dropped.
"700 is typically a good credit score and many people above are being turned down for loans," Hollander said.
That's because their home isn't worth what it was just a few years ago, which typically leads to higher rates or even denial of refinancing.
"Actually, in our local areas, that's where we've run into more issues I think than credit issues," Tonya Westerfield with Old National Bank said.
Westerfield says that Tri-State homeowners are in a better position than many areas of the country to refinance, mainly because the housing bubble, while deflated, hasn't burst like so many other regions.
"But where you'll see the difference is not so much that the loan would be denied, but you may not have the pricing that is available to you as someone with really good credit score," Westerfield said.
Meaning your percentage rate may not be as low as you had hoped.
The best advice is to talk to a mortgage lender who can look at your situation and give you the best options.
If you do get denied or don't get the rate you want, try another lender who you may have better luck with.