While the US housing industry continues to be on shaky ground, investors and lenders are benefiting from the circumstances by offering refinancing options to lots of homeowners who face the threat of foreclosure. Mortgage rates are on record lows and refinancing has now increased.
Mortgage refinancing allows many home owners to decrease their month to month premiums or shorten their loan period from 30 to 15 years in order to eliminate their debts faster. Little do these homeowners know that they are actually boosting the business for local mortgage brokers and bankers and picking up the slack in home sales.
Bob Gardner, a representative of Legacy Mutual Mortgage, estimates that refinancing now makes up about 50% of the loans. He further mentions that the company has now opened its doors to employment, propagating jobs for the local people.
However, loan companies now require more financial documents to prove income and assets as well as substantial credit scores. The ideal credit rating was raised from 650 to 760, even for government supported mortgages. To better chances of approval and get the best refinancing rates, the score should not be lower than 640.
Mortgage refinance business booming
