The sad facts of Metro Detroit refinancing

Posted on Posted in Mortgage & Credit Info

It is the hardest thing in the world right now to tell people they can’t refinance.  They can get a Michigan mortgage.  The word NO  or I can’t do it  are hard words to say.  I feel bad for these people.

Some of them are friends.

  • They are hardworking people
  • They have saved and put down down payments on their homes
  • They have good credit
  • They have paid their bills and mortgages on time
  • They have jobs and families that depend on them
  • They have done the right financial things in life

So saying No to people that have done the right things in life is sad and dis-heartening to me.  I can’t help them because their Metro Detroit home values have fallen so much.  The house won’t appraise for enough value.  The bank won’t give them a loan because they are upside down. Or it doesn’t make sense because now they would have to pay PMI.  Even their existing mortgage holder won’t re-do their loan.   My hands are tied because no bank will make a loan when the loan exceeds the value of the home

Gone are the old days of loaning money to people that pay their bills.  Now the rules of Fannie Mae and Freddie Mac override common sense.  It is almost criminal that we are spending Billions of our tax dollars to help banks pay for bad loans decisions they made. And yet we can’t help the people that paid their bills, made good financial decisions.

We can’t help people that are struggling in Detroit’s economy.  I feel like I am failing them.   I’m taking it personal.  I almost hate to make the call after the appraiser checks out the home value.  Right now I am hearing that only only 2 out of 10 mortgage calls or mortgage applications are going through because of Metro Detroit appraisal issues.

Where is the justice for these hard working people.

I don’t want to say no to them

If you live in Metro Detroit and are thinking of refinancing give your loan officer a call.  The mortgage interest rates haven’t been lower in 40 years.  Go over your scenario with your mortgage loan officer and let him check your home’s value.  If you don’t have a loan officer give me a call on my cell (248) 310-6239.  I will try to lower your interest rate and save you money.

 

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