Should I Refinance My House with Home Affordable Refinance Program?
The US economy is on a delicate recovery path and this includes the real estate market. The home affordable refinance program 2 is therefore a helping hand which many people could use right now. It is an initiative of the federal government that has been put in place to assist homeowners who have no or little equity on their homes. The program helps home owners to refinance mortgage loans at reduced rates which adds up to good savings. The program is temporary and it comes to a close on the last day of 2012.
Those interested in the HARP mortgage assistance program should take advantage of the benefits the program has while it is still open. One of the major benefits of the program is the money that home owners can save per year with the reduced interest rates. With the current state of the economy, a lot of owners are unable to refinance their mortgages because they have little or even no equity on their homes due to the big drop in housing prices. Lenders only refinance mortgages that have equity of 20 percent and up and so without the program, many would not be locked out because of this requirement.
Pay less, save more
Another advantage of the home affordable refinance program 2 is that homeowners can refinance to the standard 30 year loan or a shorter term loan which is taken with the prevailing market interest rates. The monthly payments on the loan may be higher or less than the payments one is making but one will still save a tidy amount of money over the duration of the loan.
If one has a fixed interest rate loan and they take a home affordable refinance program 2 loan, monthly repayments go down right away and one starts saving money right away. If the payments one is making at the moment are lower perhaps because of a low introduction rate, the monthly payments may go up but they will not go up again later on.
Also, the refinancing program does not require that one takes out additional mortgage insurance. There is also the provision of including costs and fees charged by lenders in the refinance amount one applies for.
Roam and save
Also advantageous is the fact that those with Fannie Man loans can refinance with the lender that is offering them the best deal as long as they have been approved by Fannie Mae as well.
Talk to a HARP specialist at AmeriFirst Home Mortgage to see if this is right for you and your situation. Click the button below and let us know that you're looking for HARP information.
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