The Days of Refinancing for Fast Cash are Gone

Americans are in search of fast cash, but looking at the number of refinance requests, you would never know it. A new survey is showing that homeowners aren't bothering to refinance despite the Federal Reserve pushing mortgage rates to all time lows. Though many are quick to point the finger at homeowners unwilling to try to refinance, in-depth studies are showing that there is a growing group of owners who have tried to refinance, but can't.

Looking to refinancing

The growing reality in today's economic climate is that home values have plummeted. People who had paid religiously into their mortgages for years were surprised when the economy ate away at the equity they thought they had amassed. That is the stickler when it comes to refinancing. People have such low equity that it hardly qualifies them for a refinance. Add to the equity issue the fact that lenders are much stricter now post-recession and banks are adding higher fees, and it makes for a sector of homeowners who have few options.

The new states of interest rates and home value

The survey done by Credit Suisse showed that about 39% of homeowners in the 30-year fixed-rate segment currently have interest rates of over 7%. A good number of those people could bring their interest rates down two full percentage points if they were able to refinance at current rates. Despite the possibility, however, the number of refinance applications in January of this year was lower than it was this time last year. ... click here to read the rest of the article titled "The Days of Refinancing for Fast Cash are Gone"