Refinancing Will Be Harder Now

Unfortunately for those who are facing foreclosure, refinancing in this current credit crisis will likely become extremely difficult, closing off one popular way for many try to pull themselves out of foreclosure. Capital One is shutting down its mortgage business, Countrywide is looking for ways to keep funding its business, and American Home Mortgage shut its doors. Jumbo loans, loans over $417,000, rates spiked since the prospect of finding a buyer, after a lender secures the loan, have fallen. It’s any ugly time for lenders and even uglier for those looking for a loan, especially if they’re trying to get out from under an ARM that will re-evaluate and kick someone out of their house.