Looking for the best Portland refinance rates? Homeowners in Portland, Oregon love Stumptown for its panoramic Willamette River, inspired gardens like and its cultural diversity. Yet, like the rest of the nation, Portlanders are feeling the effects of the economic turndown. For this reason, the number of people refinancing in the city is on the rise.
Of course, a city with over half a million residents is not going to meet the needs of everyone in the same way. Since we've got about 223,000 housing units here, based on the 2008 count, it's safe to say that your financial needs are not going to be the same as your neighbor's.
Take a look at the facts about the Portland housing market, refinancing, and your options before you make this important financial decision.
The Housing Market and Your Portland Refinance Rates
Home sales in the area of Portland where you live do affect the interest rates that the banks and lenders offer you. This is because the assessed value of your home, and therefore the potential sales value if you default and the bank ends up with your home, is a consideration. Of course, many other things are taken into consideration too. The amount of equity you have in your home, the interest rate and type of your current loan, and your credit score all matter.
As far as the burst of the housing bubble goes, those of us here in Portland have fared better than most. In March of 2009, Forbes magazine listed our city as the 4th most stable housing market in a list of the 23 largest US cities. As far as sales prices go July of 2009 saw Portland's lowest average sale price on the east side in the Gresham area at $223,500. The top average for our metropolitan area was at $443,777 in the northwest section of the city.
This doesn't mean we're in great shape. A balanced market place carries about a 6 month supply of unsold homes at any given time. Portland is at an 8.2 month supply and that is down from an 18 month supply in January of 2009. For anyone considering refinancing, Portlanders are in a better position than most of the nation.
Home Equity and a Portland Refinance
In the simplest of terms the equity of your home is the difference between the amount of money you owe on your mortgage and the current assessed market value of your property. If your home is worth $200,000 and you owe $120,000 on your mortgage, then you have $80,000 of equity in your home. A lender looks at this amount to determine how big a risk it is to loan you money. So, just how much equity is required to get a good refinance rate in Portland?
That depends on why you are refinancing. If your goal is simply to change the terms of your current loan then you should expect to have between 5-10% equity in your home. A change in loan terms can mean switching from an adjustable to a fixed rate, getting a better interest rate, or altering the number of years that the loan is written for.
If you want to take cash out against the equity in your home then the lender will look for more than 10% equity. This is because they need to insure that the cost of your refinance loan doesn't exceed more than about 90% of you home's current value. This assures them that there will be ready cash (in the form of equity) left on your home if needed.
How to Get a Portland Mortgage Refinance
If you think that refinancing your current loan will help you pay your monthly bills or meet some other goal there are some simple step you need to take. First, know how much equity you have in your home and be aware of your credit score. Then, get some rate quotes from lenders in your area. You can go through a mortgage lender, bank or ask a local realtor for a reference.
If you want to bypass dealing with the real estate folks for the time being, you can use a refinance tool like the one above. This device will send you the rate information you need, so that you can compare offers from different Portland lenders at one time.
Once you've got the information on your side, choosing a lender is easier. You can take this step right now if you want, and get back to the rest of your day. Simply enter your zip code into the tool above to get started comparing the best Portland Oregon refinance rates online!
