A call to all those who follow loans
First, determine if you owe more on your mortgage than your property is worth. This is the unfortunate case many homeowners who purchased in areas experiencing declining home values are in. You will not be approved for mortgage refinancing if your current mortgage is higher than the value of your home. In fact, many lenders offering mortgage refinancing now make 20 percent equity requisite. If you pass the home equity test, move on to calculating the cost and benefits of mortgage refinancing.