By James OBrien

The US housing market continues to shrug along in awfully rough condition and has caused a rather large number refinance home loan appraisals to come in at much lower values than either the homeowner or even their refinancing lender could anticipate. Many of these recent home appraisal valuations are causing mortgage applications to be denied or in many cases are rendering the loan to value ratio so excessive that the primary advantages anticipated with the initial home loan rate quote is blown out of the water. When a low value comes in on a home appraisal, many times, the homeowner really has no option but to walk away from the refinance application process for the reason that there is really no advantage for moving ahead with the loan. Low appraisals can cause higher rates, eliminate any chance of consolidating debts, and even add monthly private mortgage insurance to the loan payment.

What complicates matters even more is that there is really no indicator as to when the housing market may stabilize and turn to positive ground. Given the unknown, yet heavily projected number of home foreclosures yet to be listed on the market at the same time when home loan mortgage rates may be shifting upward, home valuations may not get better, in fact, may get worse for the foreseeable future. Some recent existing home sales figures have come in at better than expected rates, but a trend it does not make. In reality, the housing market is no different than any other market; it’s all about supply and demand. Simply put, there still exists a glut of distressed-sale homes on the market and the home purchase demand is just not there yet. Most likely, the housing market will be at the mercy of the employment market for any pronounced increase in home sales. When people are either out of work, underemployed, or feel the risk of losing their job, buying a new home isn’t typically the number one concern on the agenda. What’s more is that many potential home buyers seem to be waiting out the market in anticipation of further declines in home prices.

It really is a shame too, as numerous homeowners stand to profit with significant monetary gains by means of refinancing now, while mortgage rates remain at historic lows, yet many borrowers are being shut out due to low home valuations. Should you happen to be presently seeking to refinance your current home mortgage, it would certainly be advisable to go on the internet for no-cost reports as to the true value of your dwelling. There are many websites that supply home comparable databases free of cost and you won’t even be required to register or give out your own personal information to get your ‘eppraisal’. It is also advisable to get your online home value estimation from at least two websites and preferably three. This way, you will have a range of values to determine where your home’s actual home appraisal figure might come in.

About the Author: James O’Brien is a mortgage industry professional writing articles about

home mortgage loan

topics. Please visit the Refinance ToolBox.com for

refinance calculator

access and to learn more about home loan options along with all the nuts and bolts of mortgage refinancing.

Source:

isnare.com

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