The holidays and government-backed mortgage lending have a rocky relationship. The problem is that even when authorized lenders are at full strength, completing a refinance normally takes about three weeks. But the holidays always cause additional delays. First there are all those actual holidays that reduce the number of business days in November and December. Add to that the extra time processors and underwriters normally take off and you are often looking at weeks added to the process of completing a mortgage transaction. For those reasons, if you were considering looking into refinancing your mortgage at the start of 2011 it would probably be wise to start your investigations now.
Further, some banks are holding off on foreclosures until January. When banks get back to foreclosing on homes at the start of 2011 that could further depress housing values throughout the country. That in turn could reduce the amount of equity you have in your home. In cases where the equity is tight already waiting too long could cause troubles.
So if you have been thinking about refinancing while rates are still near historic lows we recommend you get a jump on the post-holiday crowd and contact us in the sidebar right away. Our counselors can help you figure out which programs are available for your situation. Getting the ball rolling now could save you time and headaches in January.