Refinancing is a topic that hits close to home for me. Several of my previous clients wished to refinance their homes that I helped them purchase in 2006/2007. They've had the usual up and downs that most Americans have suffered this last year: layoffs, pay reduction and no raises. Due to various reasons (low appraisals, funky loans), they weren't able to refinance. They are the homeowners that fall outside the refinancing parameters. They need relief and they're not receiving it. Thankfully, they're still able to afford their mortgage but it's tight. A reduction in their interest rate would save hundreds of dollars a month and make things a lot easier.
Apparently, my clients aren't the only people affected by this trend. Although values in DC have remained strong in some neighborhoods, they haven't in all Metro areas. The Post published an excellent article in today's edition that illustrates the hazards of refinancing in today's market.
Although I know this has been happening all over the country, it isn't easy to accept. I wish I had better solutions for these clients but I don't. Real estate 2010. Happy Valentine's Day!