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Government Mortgage Refinance Plan – Can I Get a Lower Rate?

Posted on | October 21, 2009 | No Comments

The current government mortgage refinance plan was created to help everyone get a lower mortgage rate.  Prior to March of 2009 mortgage lenders were being very strict with their lending practices and only the best borrowers had the opportunity to lock into a low mortgage rate.  When the Obama administration enacted the Making Home Affordable plan they encourage lenders to lend money to borrowers by creating incentives for lenders.

Many borrowers have benefitted from this opportunity and have refinanced to a lower mortgage interest rate.  Now even bad credit borrowers have the opportunity to refinance their home mortgage.  This does not mean that bad credit borrowers are getting a mortgage rate under 5% but they are able to refinance to lower rates.  By refinancing to lower rates many of these home owners are saving money to put towards other things.

It is extremely hard to make ends meet in the current economic environment so any money saved can go a long way.  By refinancing, some home owners can save several hundred dollars a month.  This can add up to several thousand dollars a year.  Can you imagine saving several thousand dollars a year just because of a lower mortgage interest rate?

If you can refinance to a rate that is one full percentage point lower than your current rate then you should go through the home refinance process.  If you cannot save a full percentage point then the costs of refinancing will probably outweigh the benefits.  You will never know what your refinance rate will be until you go through the mortgage application process so please do this as soon as possible.

There are many mortgage lenders out there that are advertising mortgage rates well below 5% at the current time.  If you feel you can benefit and save because of the government mortgage refinance plan then contacting these companies should be your next step.  Even if you are not a financial sound individual you can still get through the refinance process and save a great amount of money to help you get through the recession.

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Author: Tiffany Mann

Category: Government Mortgage Refinance Plan

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