Refinance My Mortgage And Property Values Going Down

Homeowners who are current on their mortgage and who are not having problems at all with their mortgage but want to refinance to take advantage of the low cheap mortgage interest rates are finding it not so easy to refinance.
All across the U.S., espeically those homeowners who live in California, Arizona, Nevada, Florida, and Texas, the states most hardest hit with foreclosures, are caught between the dilemna of waiting for a slightly better interest rate as rates are hyped by the news media while their home values continue going down.
It is helpful to understand why property values are going down to understand that waiting on interest rates to go a little lower could be a critical mistake if you are looking to refinance to reduce your mortgage payment. To explain why property values are going down you only have to look at simple supply and demand economics that most of us learned in highschool.

Over Supply Of Homes For Sale Drives Home Values Down

Supply and demand suggests that if you have too much of something then it is not that valuable and people are not willing to pay as much for it. This is the same for housing. As more homes come on the market, competition for these homes goes down, so prices go down in hopes that homes can be sold. With even more homes on the market for sale, the spiral continues. Homebuyers continue to wait for prices to go down even more to get an even better deal. This causes prices to go down even more.

Home Values Going Down – Do Not Wait To Refinance

The crappy thing that this means to you as a current homeowner looking to refinance is that you suffer because the homes that are used to determine the value of your home are the very homes that are being sold. With sold home prices on the decline, so does your home’s value. Therefore, if you continue to wait for a better rate, you could wait yourself right out of the guidelines for being able to refinance.
To find out more your home’s value and to get any questions you may have about your refinancing options please complete the form below: