See more on home equity loan
As a result of the credit crisis, banks are now more risk averse. They are requiring higher credit scores, bigger down payments and cleaner credit histories. So borrowers who may have qualified for a home mortgage last year, may not now. A consumer looking to refinance a home mortgage will be under the same scrutiny as one applying for a home mortgage for the first time. Homeowners in some real estate markets have experienced such a decrease in home prices that many owe more on their home mortgage than the home is worth.