This bit from a recent AP article caught our attention:
HOW MUCH WORSE COULD IT GET?: The Federal Reserve estimates home prices could fall 18 to 29 percent more by the end of 2010.
This is a big deal. The more home values drop the more people who will become upside-down / underwater on their homes. When your home is worth less than you owe on your first mortgage you can’t refinance no matter how good your credit and income is unless you currently have an FHA or VA loan. If you owe more than your first and second mortgages combined but your home is worth more than your first mortgage still you may be able to refinance the first mortgage and subordinate the second mortgage but doing so can be difficult.
If you still have equity in your home and need cash out to pay off other debts or need to refinance to get out of an undesirable loan contact us in the sidebar. The longer you wait in the 2010 the lower the value of you home may become.