“I can’t blame them,’’ said Shedd, president of Mortgage Resources Inc. “They don’t like to be told no, no, no.’’
That divide between those who can and can’t refinance is more distinct than ever, say brokers and housing advocates, as lenders shy away from doing business with anyone whose situation even hints at risk. The result is those who might benefit most from refinancing are being shut out of the best rates, most often because their property values have eroded or their income has dropped.
Meantime, some fortunate homeowners are finding that refinancing has never been easier. TD Bank, for example, is offering customers with good payment records a chance to lower their rates for just a small fee - and without a property appraisal.
Existing-homes sales rose 7.7% in August. B6
Excluding so many people from the opportunity to get a better loan seems almost cruel, said Glenn Kelman, chief executive of Redfin, a Seattle online brokerage that serves the Boston area.
“There is something cynical about lowering interest rates and then making sure that the people who really need access to credit the most can’t get it,’’ Kelman said.
That’s led to a decline in the number of loans being refinanced. During the second week of September, US mortgage refinances dropped 25 percent compared with the same period last year, according to the Mortgage Bankers Association in Washington.
“A lot of people that could refinance successfully, a sizeable percentage of folks probably have done so,’’ said Keith Gumbinger, vice president of www.HSH.com, a mortgage information website based in New Jersey. “There are millions of borrowers who would like the chance to refinance but cannot.’’
Homeowners unable to secure the most attractive loan rates include about 234,000 in Massachusetts, nearly 16 percent, who are “underwater’’ - meaning they owe more than their homes are worth - according to a September report by CoreLogic, a California research and consulting company .
