Is It Time To Refinance That Re-Setting Adjustable?

So, Jackson County Oregon Homeowners, is it time to refinance?

Are you an Ashland - Talent - Phoenix - Medford - Jacksonville - Central Point - Eagle Point - Ruch, Oregon homeowner who took out an Option ARM? Have you called your CPA for the 3^rd time to confirm you made the right decision after the constant barrage of media attention on these loan products?  Because, you did consider all the alternatives available to you when you took out your home loan, and there were good reasons for the choice you made - but, you just want to make sure.

Okay...you took out an interest only, adjustable rate mortgage. Big deal! You did so because your income derives from annual dividend, irregular commissions, residual income, trust payments, and such. Maybe you started out with the idea your home would be a speculative purchase. So, you took out an Interim Fixed Rate that will reset to become an adjustable rate loan. So what! But, you realized that this home would suit your needs for the long-term.

So, now, you are thinking of refinancing your home. But, wait! 

• Values have dropped!
• The banks are all closing their doors!
• There is no money being lent!
• The market is flooded with foreclosure homes!

This is what I hear on the news and read in the papers, isn't it? It must be so!

Well guess what, Jackson County Oregon homeowners? Things aren't quite as bad as they may seem.

1. Real Estate Markets are LOCAL markets!  Yes, sales in Jackson County Oregon have slowed. They needed to slow! Average home prices had peaked at $325,000 in June 2007, which is more than 6 times the median income for Jackson County Oregon! Now, we're approaching 4 times the gross annual income for the area, which is a better reach for most borrowers. One can "tweak" these numbers and paint a picture in many lights, but my position is all things considered, we are doing okay here in Jackson County, Oregon.
2. I cannot say that I miss the banks/lending institutions who have closed their doors, although I do miss some of the individuals who worked for these companies but lost their jobs.
3. The loan products I use are still readily available. Most homeowners in Jackson County Oregon are borrowing less than $417,000 and meet the conforming limits. Jumbo money, loans in excess of $417,000, is still available. Yes, Jumbo loans bear higher interest rates, but they are still right around 6.875%-7% for most borrowers. Yes, lending guidelines are tightening - getting back to the common sense criteria most of us have always followed anyway.
4. Oregon is seeing 1 in 916 homes in foreclosure. Not great, could be worse. Whether these homes are being lost due to - a) resetting ARM's, b) declining values, c) medical emergency, d) job loss, or e) all of the above - we'll never know, as they don't report the reasons behind these statistics.

So, Jackson County Oregon Homeowners, is it time to refinance? Maybe... maybe not. It depends on a multitude of factors. Where is your interest rate presently? How is your adjustable mortgage set to adjust? How long do you plan to stay in your home? How much do you owe in relation to your home's current market value? Call a reputable, professional mortgage consultant to help you make the decision on whether or not it is time for you to refinance.