Don't Let Mortgage Company Woes Scare You From Refinancing

By Richard Barrington Columnist

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With mortgage companies reporting rising numbers of defaults and foreclosures, this might seem like a bad time to approach a mortgage company about refinancing your mortgage.

However, if refinancing makes financial sense to you, don't be shy about refinancing. Not only will not hurt to inquire, but also you might find mortgage companies are happier to see you than you may have thought.

Mortgage Companies Don't Want Your Mortgage to Turn Bad

First, from the point of view of your existing mortgage company, having mortgage holders approach them with a proposal to make the mortgage more affordable is not a problem. The last thing mortgage companies want to see right now is another mortgage default -- slipping toward the risk of foreclosure.

Someone who has taken the responsibility to try to make their mortgage more affordable should be seen as a good customer. Problem mortgages come from people who don't confront their payment problems until the last possible minute, when it is often too late.

With New Mortgages Down, Refinancing Is Welcome

Not only should your existing mortgage holder welcome a discussion of refinancing, but other mortgage companies should be happy to consider your business. After all, sales of existing homes were reported to have dropped for the fourth straight month in June, falling to the slowest pace in 4 years.

This means fewer and fewer new mortgages are being written. Refinancing a mortgage can be one way for mortgage companies to pick up the slack, so take the attitude that they should be glad to see you -- and compete for your business.

Associated Press

About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.

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