In today’s market, the biggest wall people hit when reviewing home loan refinancing options boils down to home value. Unfortunately, almost all property values have taken some kind of hit and many homeowners have a current loan balance that is near, at, or exceeds the current value of their home. Therefore, home loan refinancing might not be a possibility. In the past, to refinance a home loan your value needed to be far above the loan balance so that there was significant equity in the home. Unfortunately, many people today are short on equity simply due to home prices falling.
Fear not though. Thanks to the Home Affordable Refinance Program, HARP home loan refinancing is very possible even if your value is “under water”. Without this special program, a great percentage of homeowners would be unable to complete a mortgage refinance.
Home Loan Refinancing