An article that I spotted on my favorite monetary policy/macro-econ/geo-political/financial website - www.jsmineset.com. Without mentioning the problem, it speaks to the fact that many Americans are looking ahead to troubled times with their variable interest rate mortgages, people who will essentially have not escape from those mortgages because of this problem mentioned below. -Allan
Refinancing: Only for the privileged few
Sure, now is a great time to refinance - that is, if you can still qualify. Here is what lenders are looking for.
By Les Christie, CNNMoney.com staff writer
February 8 2008: 3:00 PM EST
NEW YORK (CNNMoney.com) -- The good news: mortgage rates are down. The bad news: it's much harder to qualify for a refinanced loan these days.
What's more, the borrowers who need to refinance the most - because their adjustable rate mortgages (ARMs) are resetting to higher interest rates - are among those having the most trouble winning approvals.
"I'm turning away about 60% to 75% of the clients who come to me for a refi," said Bob Moulton, president of Americana Mortgage Group on Long Island, N.Y. "Some don't have enough equity and others have bad credit scores." Continued