Why more people aren’t refinancing? But here is Cheapest homeowner loans for all

In many cases, people whose home values have dropped aren’t eligible. Shrunken home values have reduced the total equity Americans have in their homes to under 40 percent — the lowest since the Great Depression. As a result, many people lack enough equity to qualify for refinancing. Or their credit scores aren’t high enough.

Another obstacle: Refinancers typically must pay thousands in closing costs and appraisal fees. Those costs usually add up to 1 percent of the loan’s value — $2,000 in fees on a $200,000 loan, for example. Typically, most experts say, it’s worthwhile for homeowners to refinance if they can reduce their rate by a full percentage point.