You've seen advertisements all over the web: the "I just refinanced at a great rate" dance.
However, readers ask why they can't refinance. Good credit and some home equity should be more than enough, right?
Unfortunately it's difficult to get a loan these days. Banks are still skittish about losing money, so they require more documentation - and they take a closer look at everything you submit. In addition, appraisal rules have changed in recent months, which make it harder to get the loan to value ratio (LTV) you need.
Most of the hype you hear about refinancing is marketing. The goal is to have you submit an application. They'll scrutinize every detail before making a loan. Yes, rates are low, but you might not qualify.
If you're trying to refinance, get ready for a long process. Make sure your credit is in good shape and there are no errors on your reports. If you don't have the LTV needed for a refinance, see if you can find a way to fix it. Peer to peer lending and family loans may be an option. If the refinance helps you take advantage of lower rates, you can pay off those P2P loans and still come out ahead (as long as you're disciplined, and assuming the new loans don't hurt your credit).
You're not alone if you're having trouble. The problem has been around for months (see Why Refinancing Is So Hard). You have to work a little harder, but it may be worth your time if refinancing gets you a much better deal.
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