We have relatives who are, pardon the expression, total deadbeats. They bought their house 6 years ago and have been behind so much that they are $5K further in debt than the original value of the mortgage.
(I know there are lots of people who fell victim to the circumstances of this economy, but this is not the case with our relatives. I get this straight from the horse's mouth. They make more money than they did when they bought the house- their problem is not income, it's outgo.)
So their credit sucks. But they just went in and got a refi under the guidelines set forth under the stimulus package, and now their interest rate is 3%!
I couldn't believe it! We have respectable credit. When we got our mortgage (in 2008), we got an under 5% interest rate, and I thought that was good. Now I'm wondering if we should refinance (for the interest savings) and if we can refinance, since we are not underwater and have never been late or missed a payment.