The news coming from the financial pages is rather discouraging these days, a fact that has made many consumers leery of the credit markets. However, today's credit markets are not a fearsome place for those who are properly prepared. The many headlines about rampant foreclosures and predatory lending can indeed be intimidating to the average consumer, but the reality of the situation is that these problems are affecting a relatively small segment of loans, most of them creative sub-prime products.

In many cases, those affected have been unwise in their choices, borrowing more than they could truly afford to repay, urged on by lenders or brokers who also made irresponsible decisions when approving these loans. In many of these instances, borrowers and lenders were gambling on rapidly rising home prices to negate the risk of lending too much to consumers with shaky credit or high debt levels, a strategy that failed miserably when home values began to sink.

In other cases, consumers had not taken the time to properly educate themselves on the loan process, leaving themselves vulnerable to being taken advantage of by aggressive or dishonest loan originators. A careful, responsible consumer has no reason to fear today's credit market, as one who does their due diligence before signing the dotted line can be quite sure of getting a fair and solid mortgage or home refinance loan that will remain affordable throughout its repayment term.

The recent market woes have contributed in some ways to making home loan shopping a bit safer for the average consumer. In response to the loose lending practices that have been cited as a major factor in today's sub-prime lending meltdown, standards have been tightened considerably, making it much more difficult for consumers to qualify for home loans that they cannot truly afford. Of course, even these tighter loan qualification standards are no replacement for good research on the part of consumers, which is always the best assurance of getting the loan best suited to your needs.

Another benefit to consumers that has resulted from the sub-prime meltdown is the recent rate reductions by the Federal Reserve Board. In an attempt to mitigate the effects of the sub-prime fiasco on the general economy, the Fed has lowered rates on several occasions recently, changes that have trickled down to nearly every form of consumer credit. Mortgage and home refinancing loan rates have dropped significantly in recent weeks, spurring a surge in home mortgage refinancing, as consumers take advantage of extremely low rates to lower monthly mortgage payments or transition from an adjustable rate loan into a fixed rate mortgage.

In fact, despite the headlines decrying a credit crunch, a wide variety of loans are available to solid and responsible consumers. While many of the riskiest and most creative sub-prime loan products have disappeared, reputable bad credit home loans and refinancing opportunities still exist in today's home loan market. These options make it possible for many homeowners to refinance out of expensive sub-prime home loans into standard and reliable fixed and adjustable rate mortgage products.

While qualifying may not be quite the walk in the park that it was last year, consumers can certainly still access the credit they need for everyday purposes. Lower interest rates have made borrowing more affordable, and lenders are competing for the patronage of good customers. Over all, today's economic climate can hold a great deal of promise for the mortgage or home refinance loan consumer who takes the time for careful comparison shopping.