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| State | Candidate | Delegates |
|---|---|---|
 Donald Trump | ||
Pennsylvania |  Joe Biden |
Refinance Rush Leaves Many Behind
Despite lower interest rates for mortgages, some still can't save their homes.
Feb. 12, 2008— -- Larry is running out of time. This spring the interest rate on his home loan will increase, and though he and his wife earn more than $90,000 a year, Larry doesn't believe they'll be able to afford higher mortgage payments.
He has tried to refinance his adjustable rate mortgage with three different lenders but was rejected by two, and it's unclear whether he'll be able to get any help from the third.
The father of three, who asked that his last name be withheld, has admittedly poor credit and is worried that his family will lose its suburban Ohio home.
"I guess I've just got to find somebody who will invest in me and give me a second chance," he said. "I don't know if there's a whole lot of people out there doing that."
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Larry is one of an increasing number of homeowners, encouraged by falling interest rates, who are rushing to refinance. Last month, the Mortgage Bankers Association reported a 92 percent increase in refis since the beginning of November.
"If you have good credit, are in markets where house prices are stable and the loan is, say, under $417,000, then you will probably have no trouble refinancing, and probably on very good terms," said MBA chief economist Doug Duncan.
But experts agree that significant numbers of homeowners are being left out of the refinancing rush. Those with poor credit, those with "jumbo loans" -- loans worth more than $417,000 -- or those who, thanks to dropping home prices, owe more than their homes are worth likely won't be able to find attractive refinancing options.
The number of clients who have been rejected for refinancing or can't get the terms they want is double what it used to be, said Stephen Kaempf, the president of Choice One Mortgage, a mortgage broker in Lake Zurich, Ill.
Badly bruised by the subprime housing crisis, banks have tightened lending regulations, and homeowners who in previous years might have had an easy time refinancing are finding today's climate nearly impossible.
