Can I refinance my home if its value has decreased?

Yes, if your home is worth the balance on your mortgage, and your credit rating is sufficiently strong. And if you have at least 20% equity in your home at its current value, you're likely to qualify for the lowest rate available. A professional appraiser will set the current value using specific criteria. Don’t try to second guess this process!


To get the lowest costs, shop around. Lender fees should be roughly $1,000, and appraisal fees around $400. Title insurance for the lender will be the biggest number. It’s a state-mandated amount, but discounts exist if your policy is less than 7 years old or if you use an approved attorney. (On a $400,000 loan, the title might cost $1,400). Don’t assume the lender’s title company has the best rate. You’re entitled to choose your own title company, so shop around. Some lenders offer NO FEE refinancing, but rates may be slightly higher.


For referrals to good title agents and lenders, contact us.


If your home’s value is less than the balance due on your mortgage, ask your current lender about federal lending programs you may qualify for. And if your credit rating has suffered due to late payments or job loss, a good lender will let you know if you qualify – at no charge to you.