A government report came out this week that showed nationwide that in the first-quarter, home values have lost a third of their value from 2006. Consequently, the pot of refinance-gold can’t be tapped by a large number of consumers, because many people are prevented from refinancing, because their homes will not appraise at a high enough value.
Homeowners in the Denver metro area could potentially save more than $500 million a year by refinancing, according to an estimate by InsideRealEstateNews.com, if they only were able to take advantage of record-low mortgage rates."I have to tell dozens and dozens of borrowers that they don’t qualify," said Lou Barnes, principal of Boulder West Financial."Our phone aren’t ringing off the hook," to refinance, despite 30-year fixed rates – with no discount points – available at well-below 5 percent, said Peter Lansing, president of Universal Lending."I would say they are the lowest they have ever been," Barnes said. But unlike other times that rates fell, many homeowners cannot take advantage of super-low rates.The rates would be "Great, if your home wasn’t under water," which means the loan is worth more than the house, said Mike Rinnner, of the Genesis Group, which tracks housing along the Front Range
By John Rebchook, June 1, 2010 Denver Post
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