Government Mortgage Refinance Plan – Low Mortgage Rates Today?
Posted on | August 28, 2009 | No Comments
The government mortgage refinance plan was created to help you access lower mortgage interest rates. Average mortgage rates have been around 5.1% for the most of this week and we have see interest rates flirt with the 5% floor for quite some time. The issue in the past was that only the best borrowers had access to these low rates. The old adage that the rich get richer held true for much of the troubled economic period from October 2008 through March 2009. If low interest rates were only accessible by the best borrowers, often the rich, then the subprime borrowers, the poor, continued to get hammered with fees and high interest rates.
In March, President Obama and his staff released the Making Home Affordable Plan that allows home owners to gain access to low mortgage rates even if their credit is not amazing. This does not mean that you will get a mortgage rate under 5% if you have a credit score of 650. What it does mean is that you will have the opportunity to refinance at low rates than prior to the Making Home Affordable plan.
The plan only consists of mortgages back by Fannie Mae and Freddie Mac so you might want to check and see who backs your mortgage. Over 70% of United States mortgages are backed by these companies so it is highly likely that yours is as well. If you mortgage is not backed by these companies then there are other assistance programs out there for you. By doing a few quick Google searches and doing some research, you will find that there are many federal mortgage assistance programs that could help you.
The issue that many American home owners have is that they are not educated to these programs. Some times the programs are quite extensive and its hard to comprehend all the material. Companies have actually been created to break these programs down and explain it to common citizens. There is a fee, of course, for these services, but it might be worth your time and effort to pay the fee so you make sure you know what your options are.
Overall, it is a very good time to refinance because the government mortgage refinance plan could greatly assist you. Even if your mortgage is not backed by Fannie Mae and Freddie Mac, there are still options available for you. The next step in the process of getting a mortgage refinance is to get out there and actually do the research necessary to get a reasonable mortgage interest rate. The more knowledgeable you are of the subject, the better rate you will get.
Author: Tiffany Mann
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