Refinance Loans in Markets with Falling House Prices

A May 13 2014 article points out that the housing market recovery, while benefitting many housing markets all across the country, hasn’t reached all neighborhoods--some home owners struggle with falling house prices in their zip codes while others may be reaping the benefits of rising equity and property values elsewhere.

According to the article titled, “7 Places Where Home Prices Are Falling”, we learn “The recovery in the U.S. property market has proved to be choppy. National home prices still haven't returned to 2005 levels, according to David Blitzer, chairman of the index committee at S&P Dow Jones Indices, who cites both new and existing home sales.”

That does leave room for improvement, and any borrower in such an area considering a home loan refinancing option has two choices to consider. You can wait for property values to increase in your area, or you can consider going with a no-appraisal, no cash-out option instead of trying to get cash out on equity that might not be as good as it could be once the recovery finally arrives in a particular housing market.

Some of the housing market woes in some states may be related to temporary conditions.
“House prices in Oklahoma City dipped 1% year-over-year in the first quarter after a 5% fall in the fourth quarter of 2013, according to RealtyTrac. Oklahoma had an extremely cold winter. And higher health-care payments under the Affordable Care Act impacted some of her clients, says Leslie Thomas, real-estate agent with Keller Williams Realty in Central Oklahoma.”

The weather factor shouldn’t be underestimated in 2014--it may only be a matter of time for some before values begin to rise once more.

But the no-cash-out refinance is definitely a good option for some home owners who are more interested in lower payments than taking money back on the deal. If you are one of those home owners, consider your options with a refinance loan designed to lower your payments or interest rates. You may be surprised to learn what options are open to you. Talk to a loan officer about your needs and goals to get started.

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