New York, NY (PRWEB) September 20, 2007
Two million adjustable rate loans will reset within the next year and mortgage companies are preparing for the fallout. The majority of these homeowners need to refinance their loan into a fixed rate mortgage prior to their reset date. Fast Mortgage Loan Approval (FastMLA) has always specialized in helping customers find mortgages at great rates within a short amount of time. With an influx of homeowners across the country needing to refinance, FastMLA has adapted to the changing market. Fast Mortgage Loan Approval (FastMLA) can now help homeowners, from all 50 states, refinance their adjustable rate mortgage into a fixed rate loan. But heed our warning - don't wait until the last minute to refinance.
Most experts agree that if homeowners wait too long to start the refinance process, they might find themselves out of options. Out of the two million loans that will reset by the end of this year, about 240,000 homeowners will qualify for an FHA backed loan. These loans help struggling homeowners qualify to refinance into a fixed rate loan. For those that do not qualify, FastMLA advises applying today to see what refinancing options are available.
With stricter lending practices, homeowners that want to refinance should think about how to prove the following to their financial institution of choice:
- Good employment history
- Enough income to make their mortgage payments and other obligations
- Good payment history for 6 months before their loans reset
- 3-6 percent equity in their home, but possibly down to 0 percent.
With recent media coverage showing an increase in foreclosure warnings across the United States, many are thinking ahead and are trying to adjust their mortgage now instead of waiting until the last minute. Others have decided to place their homes on the market, in the hopes of getting close to what they paid for their home. Homeowners that cannot sell for their purchase price are now trying to rent for close to the price of their monthly mortgage payment. In many areas, it is not only a buyers' market but also a renters' market. Starting the refinancing process early may be the best advice to those with an adjustable rate mortgage. If homeowners wait too long, they may lose their homes and damage their credit.
These issues arose after the recent US housing boom. Mortgage rates stayed too low for too long and prices skyrocketed in response. Then when prices fell, homeowners that recently purchased with an adjustable rate mortgage found themselves needing to refinance as their rate adjusted. Some refinanced but some did not. Problems arose when those homeowners owed more than their home was worth in the marketplace. Also, some homeowners purchased homes that were too expensive for their means and simply could not afford paying on a fixed rate mortgage. Foreclosures are now at record levels and may continue for the foreseeable future.
This might be the time to refinance your mortgage into a fixed rate loan at a record low rate. Proving good employment history and income to show that you are not a credit risk will help in your mortgage search. Fast Mortgage Loan Approval at FastMLA.com can now help homeowners find a mortgage in all 50 states. If you are interested in learning more about your mortgage options, visit http:///http://www.fastmla.com - Fast Mortgage Loan Approval.
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