Government Mortgage Refinance Plan – Will Obama Save Your Home?
Posted on | September 27, 2009 | No Comments
The government mortgage refinance plan has helped many Americans save their homes and avoid foreclosure. President Obama is doing everything in his power to help you save your home. You may find that your home is losing value over time but that does not mean that you should accept foreclosure. If you accept foreclosure you will find that your financial career is ruined for almost an entire decade.
If you give up on making the monthly mortgage payments on your home you are basically telling the bank that you are giving up on the biggest financial commitment of your life. If this is the case, you will not be able to purchase anything on credit for almost an entire decade. You might not think that this is a problem but just ask someone who has been through it; it totally changes your life for the worst.
President Obama realizes that many American home owners are facing foreclosure and it does not help anyone if this happens. It does not help the banks, it does not help the home owners and it sure doesn’t help the economy. With this being the case, the government is trying to do whatever it takes to keep struggling home owners in their homes. Part of the plan is to allow home owners to refinance at lower mortgage rates.
The average for the 30 year fixed mortgage rates is currently under 5%. This is one of the lowest level we have seen in the history of the United States. The average for mortgage rates for the year 2009 will be the lowest year on record. With this being the case, there is no reason that you should not at least attempt to refinance and see if you can get a lower monthly mortgage payment.
It might not seem like a lot but even if you only save $25 a month on your mortgage payment this is still money saved that can be used for the next mortgage payment or used to pay off other bills that you have gotten behind on. Most home owners that are refinancing today are saving much more than this. Some home owners are saving as much as $300 to $400 a month on their monthly payment by refinancing.
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Author: Alan Lake
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