If you have higher mortgage payments, now is the time to change it! In recent years we have seen many changes in our national economy. We have seen cuts in interest rates given by the Federal Reserve cuts not seen for many years.
One situation that influenced home foreclosures for many homeowners were the high interest rates they were granted. These mortgage loans were presented for a large number of months as a fixed payments and later converted into variable rates, causing a drastic financial instability in many homeowners facing now a new higher mortgage payment.
The HARP Refinance Program gives the Homeowners that have not been behind in the last 12 months, and can prove income under the new conditions and repayment capacity; the opportunity to refinance with low current interest rates. This means that you can refinance even if the actual mortgage balance is higher than the value of your property on the market today. The HARP and FHA programs are the only programs that allow you to refinance under these terms.
Compare and discuss your options and determine if refinancing NOW is financially right for you. The essence of refinancing is to find the best fit and financial balance for you and your family. Remember, an informed decision is the best guarantee!
Falling interest rates precipitated a major refinancing rally according to the Mortgage Bankers Association’s (MBA’s) Refinance Index. The MBA’s Refinance Index is a weekly measurement put together by the Mortgage Bankers Association, and the National Real Estate Finance Industry Association.
Strong job growth, coupled with low mortgage rates, should reflect now the increase in home sales and purchase originations. Great time for purchases but even better for refinancing.
Mortgage rates are historically low, and many owners have the opportunity to take advantage, but not all owners pay close attention to these numbers.
You have the opportunity to investigate the possibility of refinancing through HARP or stream line if your loan is FHA to take advantage of the historic rates.
You can analyze what financial options give you the best interest rate and most convenient terms according to your personal situation, and you do this by comparing these rates from various financial institutions through the Good Faith Estimate. This simple action prompts banks to be more competitive and offer rates lower while they.
Mortgage rates are closely linked to the action of the Federal Reserve – Fed and the economy, so it’s important that you analyze your financial situation to see if you could take advantage of the today historic rates, before they take off.
Let me explain with numbers in this example:
Balance of mortgage: $ 200,000 –
§ Interest @6.5% Monthly Payment $ 1,440.
§ Interest @3.75% Monthly Payment $ 1,014.
§ Total Savings Monthly $ 426.
§ Total Savings Per Year $5,112.
§ 30 Years Total Savings $153.360.
Check your mortgage payments, interest rate, balance and the pending term of the life on your loan, so you can determine if refinancing is best for you. The Government Program HARP that does not require evaluation of the value of the property, conventional and FHA Streamline Refinance are great choices to consider allowing substantial savings.
Don’t Miss It Out!
Fannie Mae is set to raise the benchmark interest rate for its Standard Modification program. Fannie Mae will raise its required interest rate for standard modifications from 4.375% to 4.5%. The rate was lowered from 4.5% to 4.375% on Sept. 15, but will now rise again in one week. Fannie Mae announced the change on Tuesday in an email sent to its servicers.
When the program began in Jan. 2012, Fannie’s benchmark interest rate was 4.625%. Fannie lowered the interest rate to 4.25% in Sept. 2012, before dropping it to 4% on Dec. 1, 2012.
“Fannie Mae Standard Modification interest rate is not determined on a preset schedule,” Fannie said in the note to its servicers. “The interest rate is subject to periodic adjustments based on an evaluation of prevailing market conditions.”
Fannie also noted that any loan modification requests that were approved at the previous rate are not eligible to be resubmitted for approval under the new modification rule