Mortgage Refinances affected by Frisco Texas Home Values

You have been monitoring mortgage interest rates and you figured the savings you may generate. You are even considering going from a 30-year note to a 15-year note to save a huge chunk of change. I applaud you for reaching out to loan officers and lenders in your consideration of refinancing your Frisco TX home. Here are some thoughts from your Frisco TX realtor:

When you apply for the refinance process, your lender would order an appraisal: a third-party, non-biased market opinion of your current Frisco TX Home value. This appraisal is used to justify to the bank on whether the amount you borrow supports its current market value. Hence, loan refinance approved or not.

This is where many Frisco TX mortgage refinances are stumbling: The current market values are not justifying the refinance values.

It's not a surprise that Frisco TX home values have been affected by short sales, foreclosures and relocation sales, just like most of America. The good thing is that the values did not plummet, but obviously they have been hurt. In some Frisco TX neighborhoods, some values drop more than others.

Your refinance may also depend on whether you had put a down payment when you first bought the home and if you have paid down on your mortgage significantly during the course of your loan.

There is not a straight answer to your successful Frisco TX mortgage refinance. Just a thought: You might want to work with an experienced lender who could ensure that your home market value did not significant change before you go down the refinance path thinking that you could.

These days, I have been helping friends, past clients and family to scramble finding better comparables for their refinance. In most cases, there's nothing I could do. Appraisers and realtors often use the same MLS system for sold comps and when there is no values out there to support a market value, there is nothing anyone could do.
I'm not saying that you couldn't refinance. But this is just food for thought that you might face this issue when you refinance your Frisco TX home. Contact a reputable lender or if you need one, I'll point you to mine. I'm also in the process of refinancing my own Frisco TX home.

Good luck.

Related Articles:

Frisco TX Homes Market Activity by the 75034 & 75035 zip codes for early 2009
Frisco TX Homes Market Activity by the Price Range for March 2009 
Complete Frisco TX Home Market Analysis for 2008

Real estate in time-sensitive information. The information provided here is deemed correct for when this article is posted.