It has been a while since lenders have been able to be both powerful and profitable. With so many foreclosures and homeowners seeking loan modifications, many lenders have lost their sense of control over their own industry. As an attempt to make a comeback many are offering incentives to homeowners that refinance their mortgage.
Expecting A Crowd
Applications for mortgage refinancing have been down for quite some time, but lenders aren’t standing by silently. With interest rates continuing to hover, and even dip lower, than ever before many lenders are anxious to get homeowners into the office to refinance. In order to encourage homeowners to “strike while the iron’s hot” they are offering cash back and flat fee closing cost options.
While refinancing can be a good way for many to lower their monthly mortgage payments, it generally isn’t an option for anyone who is already suffering from mortgage debt troubles. Homeowners should keep in mind that even a lender who offers these incentives to refinance can’t guarantee they will qualify. Further, these incentives may be subject to change in order to push for qualification, leaving them stuck with the high closing costs they were promised would be avoided.