Refinancing on The Increase Due to Low Interest Rates!

Mortgage lenders have seen refinancing demand rise as the 30-year fixed rate tumbled to 4.4 percent — the lowest level in the nearly 40 years that Freddie Mac has tracked the statistic.

However, experts say borrowers who would benefit most from a refi likely will not qualify for new loans due to income cuts, unemployment, low credit scores, or insufficient equity. Borrowers who already refinanced in the last 18 months, along with borrowers whose adjustable-rate loans are ready to reset, will account for most of the refi activity; and many will move into shorter-term mortgages to more quickly repay their debt.

Source: Wall Street Journal, Nick Timiraos (08/13/10)