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Daily Real Estate News  |  January 18, 2008  |   Latest Re-Fi Boom Leaves Many Out in the Cold
Many home owners are watching from the sidelines, unable to refinance as mortgage rates drop below 6 percent.

At 6 percent about 37 percent of homeowners could refinance their mortgages and save money on monthly payments, estimates Bear Stearns Co., but many of them can’t refinance because in the current environment their mortgage is too big or their credit score is too low.

Those likely to have the best experience finding a mortgage are those who can qualify for a conforming loan of less than $417,000 and who have enough cash or equity to put down 20 percent.

Subprime, Alt-A, and jumbo borrowers aren’t “going to be participants in this refi wave,” says Dale Westhoff, who heads Bear Stearn’s mortgage research.

To get the best rates under the current guidelines, home owners need a credit score over 679, or equity of greater than 30 percent, lenders say.

Source: The Wall Street Journal, Jeff D. Opdyke (01/17/2008)

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