Refi Boom or Refi Bust?

With the recent lowering of mortgage rates anyone that took out a loan in the last 3 to 4 years can benefit by a refiance if they have the equity in their homes to to do it. Fortunately many people that bought foreclosed or distressed properties at below market value now have the opportunity to lower their payments and recoup some remodling or rehab cost,s and still lower their monthly payments. Other people that bought at the top of the market still won't be able to realize a significant savings unless they have a FHA, VA or other government loans that can be streamline refinanced without worrying about what the new value of their home is, even if the value of your home declined it is still possible to lower your monthly payments by streamline refinances. Because these loans can be done without a new appraisal But people that bought at the top of the market using conventional financing may be stuck with he rate they originally got quite some time unless they put significant money down when they pruchased their home.

Refinacing may or may not be possible for homewoners right now, that is why this time in history with low rates it might just be a refi bust. With almost everyone being able to benefit by low rates only certain people will be able to take advantage of it. Its too bad because right now certainly this country could use a nice a shot in the arm to help jumpstart the economy again.