Reasons for being unable to refinance your mortgage loans
People all around are inquiring about refinancing their home mortgage loans, due to the low mortgage rates. But unfortunately, most of the home owners seem to hit a wall as they cannot qualify for a refinance mortgage loan. Let’s explore the reasons as to why people are not eligible for a best refinance home mortgage loan which at an outward glance seems an easy enough process.
- Lack of Equity: Most of the home owners applying for refinance mortgage loans get rejected mainly because of lack of home equity ownership which just means applying for a loan higher than the value of the house they want to mortgage.
There are a few government-backed programs like HARP that deal with high LTV’s. This could be the best option for home owners stuck in this situation. Big loan amount: If your loan amount falls into a higher cadre, and you don’t have good credit scores to back you up, then getting a refinance mortgage loan is highly impossible. These loans come along with a high-interest rate, and hence there will be more scrutiny involved when viewing your application. Once you are sure that you want to stay in the house for a longer haul, you can make it a cash-in refinance mortgage loan, by only bringing in money at the closing to get the loan amount down below the conforming limit.
Disclaimer:
The information available on this website is a compilation of research, available data, expert advice, and statistics. However, the information in the articles may vary depending on what specific individuals or financial institutions will have to offer. The information on the website may not remain relevant due to changing financial scenarios; and so, we would like to inform readers that we are not accountable for varying opinions or inaccuracies. The ideas and suggestions covered on the website are solely those of the website teams, and it is recommended that advice from a financial professional be considered before making any decisions.
