Falling Home Prices Creates Urgency For Homeowners Wanting to Refinance

An industry study released Monday shows a decline in home prices between May & June for move-in ready foreclosed properties, short sales and non-distressed properties. Experts are relating the decline in pricing to the expiration of the first-time home buyer tax credit. Many believe home buyers are simply reducing their offers by $8,000 in the wake of the credit.

Home buyers shopping the market will certainly enjoy these falling prices. People may now be able to afford a home in a city or neighborhood that in the past may have been out of their price range. However, what are current homeowners supposed to do in this situation? Mortgage rates are low, but home values are dropping.

The answer? If you're interested in mortgage refinancing, contact a trusted mortgage lender immediately.

With home values dropping, your ability to refinance could be in jeopardy the longer you wait. Your ability to refinance and roll-in your closing costs depends on the amount of equity you have in your home. If home values continue to decline, and you've only been in your home a short time, you may not have enough equity to refinance your mortgage.

If you've lost value in your home, you still may be able to do a cash-in refinance or qualify for a government-backed mortgage relief program. Cash-in refinancing means you'll need to bring some money to the table at closing, but you also could enjoy a lower interest rate and increased savings over the life of your loan.

Experts are predicting that home values may continue to decline. Don't miss your chance to refinance and take advantage of record low mortgage rates. Get in touch with a Home Loan Expert to discuss your options today.