It’s a well known fact that right after you buy a new car and drive it off the lot, your car has already depreciated. Who would’ve thought the same would ever be true of your home!
Sadly, with over 11 million Americans currently under water, it could be a while before many homeowners see positive equity. This post isn’t meant to be about doom and gloom. To the contrary, there’s good news for homeowners currently upside down. There are numerous loan programs available that homeowners can take advantage of.
Everywhere you turn there are stories about foreclosures and depreciating home values. You don’t have to look far to find depressing news stories. I’m happy to share a positive story about how I was recently able to help someone save a ton of money, even though her home had negative equity.
Last week, a customer was referred to me just after being turned down from another mortgage company. She was turned down due to having negative equity in her home. We’ll call her Holly Homeowner. Albeit unsuccessfully, Holly had been trying to take advantage of the low rates by refinancing and ultimately lowering her monthly payment. Holly was able to comfortably afford her mortgage payment with the help of a roommate. Everything changed when Holly’s roommate moved out. Without the help of her roommate, something would have to change. The purpose of refinancing was no longer just to take advantage of historically low interest rates. Now, it was out of necessity.
Imagine how thrilled (not to mention relieved) Holly was when I told her not only could I refinance her loan, but the negative equity would NOT affect her interest rate. A 30-year fixed rate in the low 4’s, plus no appraisal would be necessary! With no appraisal needed, not only was there no need to worry about her equity position, she also didn’t have to worry about shelling out $400 for an appraisal that would turn out to be worthless.
In some states, over 50% of homeowners are under water. Negative equity may remain a problem for years to come. The problem is worse for homeowners that have lost part or all of their household income. The good news is, there are plenty of loan programs available that can help homeowners keep their head above water.
Mortgage programs and interest rates change daily. If you or someone you know would like more information on whether or not you qualify for this type of program, don’t wait, contact me today.