Real Estate

Refinancing Real Estate Still Taking Place

Although interests rates are getting higher, there are still billions of dollars (75 billion+) worth of real estate refinances taking place in 2007.  People seem to be paying a higher interest rate on the new mortgage which is essentially going against the traditional reason for refinancing your home (you want a lower interest rate when you refinance).

Those are the findings in the latest analysis provided by Freddie Mac.  From April - June, approximately 4 out of 5 people looking to refinance had replacement loans that were some % larger than their original situation...

It is expected that home equity refinances are likely to drop over the remainder of this year, but that does not mean that there are not trillions of dollars that could still be "cashed out." 

Many Americans are choosing to take "cash out" of their homes or other real estate at this time to make other investments or to pay for things such as kitchen remodels or their child's college education.  This should come as no surprise to some in the real estate business as equity gains on homes, on a nationwide level, have declined this year and some are sensing that there are better ways to put their money to work. 

Before you decide to do anything with your investment of real estate in Colorado Springs, we would ask that you speak with a Colorado Springs REALTOR.  A REALTOR can give you input as to the local market conditions in Colorado and help you to decide whether investing in other alternatives might be your best move. 

It will be interesting to see if these "cash out" refinances result in slightly more foreclosures in Colorado Springs as refinancing is costing more than in the recent past and real estate may not have bottomed out just yet, at least in the Colorado Springs area.  My advice is to weigh your options carefully before you do anything and be sure to make a decision based on your real estate team, including mortgage lender.