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Refinancing May Now Be TougherRising mortgage defaults by subprime borrowers may add more than 500,000 homes to a residential real estate market already beset by slumping prices, according to CreditSights Inc.Some homeowners who counted on refinancing their mortgages at more affordable rates will find the door closing quickly on that option as lenders clamp down on making high-risk loans, according to Northeast Florida officials in the home financing field. The shake-up will hit homeowners who have subprime loans, which carry higher interest rates than regular loans, said Jacksonville mortgage broker Patrice Yamato, president of the Florida Association of Mortgage Brokers. She said homeowners who signed up for subprime loans with adjustable rates will be hard-pressed to lock in a fixed rate by refinancing. She said her "biggest fear" is that homeowners unable to refinance will face foreclosure because they no longer can afford their mortgages. Subprime loans paved the way to home ownership for buyers unable to get financing at regular interest rates, particularly when the price of homes was escalating in a booming real estate market. But as homeowners have defaulted on those loans, lenders have taken a financial blow. "There's a pullback," Yamato said. "[Lenders] are tightening up all the underwriting guidelines and really going to a very conservative approach." click here for entire article Homeowners needing to sell their home visit 888SOLDin9 to talk with our Jacksonville FL partner about their personal financial situation. Our Jacksonville FL partner, Jim Tallent buys, sells, renovates and rents homes and properties in Jacksonville FL, Duval County FL and surrounding areas. |