The Wall Street journal today has up a very useful, succinct, and factually correct (terms not often associated with mainstream press coverage of mortgage related topics) piece on the challenges faced by would-be refinancers in a world where lending standards have tightened and home values have fallen.
This is a topic I’ve covered before, but the article is worth the read. And it contains the best one sentence description of how much things have changed I’ve seen
“If you got your current mortgage in the past few years, when less documentation was needed, you may be surprised by the financial colonoscopy that awaits you.”
And with mortgage rates sitting at or below (well below for the best of borrowers) 5%, it is worth it.
Go read the whole article – it is free at least for today for non-journal subscribers – and has very useful information on a number of key refinancing issues – from equity requirements, to getting a bead on your home’s value, to what to do if you have a second mortgage, and more.