By Alicia Lanier, REALTOR
In her recent Wall Street Journal article, A Battle Plan for Refinancing Your Mortgage, Karen Blumental, explains why - even with mortgage rates holding below 5% - the re-fi process has never been more difficult for homeowners than in today’s tight credit climate. Says Blumental:
In the Sacramento, Calif., area, Michael McGee of Winchester McGee Financial estimates that one in four of his customers can’t get a loan approved. In Plano, Texas, Rodney Anderson, a mortgage lender, says the rate sheet of mortgage programs he can offer customers has shrunk to two pages from 42 during the housing boom.
“That doesn’t mean you shouldn’t investigate your options. Lowering your mortgage payment — or at least locking in a long-term low rate — can free up cash for other needs, such as repaying other debt or replenishing your retirement accounts, while reducing your financial stress.
“In addition, if you’re older than 40, shortening your mortgage term now could help leave you mortgage-free in retirement, reducing the income you’ll need to generate from your battered 401(k). “
If you have been considering re-financing, I suggest you read this illuminating article.
And, If you – or someone you know – plans to buy or sell a home or investment property now or in the near future, call me today at 408-491-1634 or e-mail me at Alicia@AliciaLanier.com
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