With rates on many homeowners' adjustable-rate mortgages rising, says the Wall Street Journal Online, some borrowers who would like to refinance into a new loan are finding they can't.
In some cases, that is because their loan carries a prepayment penalty, which would force them to come up with thousands of dollars if they refinance in the first few years.
Other borrowers, says the publication, are getting caught short by a changing housing market -- one in which home prices have flattened and lenders are beginning to tighten their standards after a long period of making mortgages easier and easier to get.
The challenges are greatest for homeowners whose credit has declined since they took out their last loan and for those who have little if any equity.
To read the entire article on Yahoo Finance, click here.
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