At one time, a borrower could easily purchase a home in Houston and elsewhere with no money down. This is no longer as easy as it used to be. Is that a good thing or a bad thing? In a sense, you could say, for many, it is a good thing. A lot of homeowners are looking to refinance their homes because the no money down mortgage simply led them to acquire a home they truly cannot afford.
This is not to say no one made out well with a no money down mortgage. In truth, quite a number of people where able to do well with the mortgage they acquired. However, there are quite a number of Houston refinance home mortgage seekers looking for new loan terms due to signing on with a mortgage that really was not a good deal.
Acquiring a no money down mortgage might lead you to working with a lender that is just making it too easy to borrow. When you make a down payment on a home, you are establishing your ability to actually pay the mortgage. Lenders will feel more confident with those capable of offering a sizable down payment. In some cases, the larger your down payment is, the more you will qualify for the mortgage. The reason for this is because you will appear to be less of a risk.
So, where did all those no money down mortgages come from? Basically, at the time the loans were issued, there was not a concern over many borrowers being able to day the loans. A number of borrowers also were so thrilled to be afforded the opportunity of acquiring a loan, they did not concern themselves with the possibility of acquiring a loan they might not be able to really afford.
As anyone that has followed the news over the past few years, there have been a huge number of foreclosures in California and throughout the United States. While not all of these foreclosures were the result of signing onto a no money down mortgage, a great many did suffer such a calamity due to taking advantage of such an offer.
What can you do if you have accepted such a deal?
You can explore your options with a Houston refinance home mortgage broker. Such a broker may be able to find you a much better loan with far more agreeable terms. If you are struggling with a mortgage, you will want to get a new one that is more affordable. This would just make better fiscal sense. For more on this topic check out http://www.refinancehomemortgageguide.com/.