Obama Refinance Plan – Lower Mortgage Rates This Fall?
Posted on | October 26, 2009 | 1 Comment
The Obama refinance plan was designed to help all home owners refinance to a lower mortgage interest rate. The number of foreclosures has drastically increased over the last few years. President Obama and his staff realized this was a problem for not only the economy but for everyone in America. You may not realize it but every foreclosure that happens near your home greatly decreases the value of your home.
With this being the case the Obama administration wanted to allow home owners to pay less on their monthly mortgage payments. One of the easiest ways to make sure that home owners are paying less on their monthly mortgage payments is to allow them to refinance their home loans to a lower mortgage payment.
Some home owners stand to benefit by saving several hundred dollars a month if they go through the home refinance process today. The current conventional 30 year fixed rate mortgage is below 5%. Even if you are considered a bad credit borrower and will not get a mortgage interest rate this low you will still benefit from mortgage rates being so low.
If you can save one full percentage point on your current mortgage then you stand to benefit greatly. If you cannot save a full point then you are likely to find that you are going to end up paying more in refinance costs then you will be saving on your monthly mortgage payments. Unless you have refinanced recently then it is unlikely that this is going to be the case for you.
Ultimately now is one of the best times in recent history to refinance your home. President Obama is doing everything he can to keep mortgage interest rates low this fall and it doesn’t look as if much is going to happen to change that. Every time mortgage rates start to move up the Federal Reserve Bank and president himself take the necessary steps to push mortgage rates back down.
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Author: Heather Best
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One Response to “Obama Refinance Plan – Lower Mortgage Rates This Fall?”
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October 27th, 2009 @ 5:26 am
Signed paperwork yesterday for a full 1 point drop to 4.375% and the bank paid .5% of the 1.5% buydown.It will cost me $31 more a month but the term went from 7/1 ARM to 20 yr fixed. I couldn’t be happier. Now I have the time to finish the remodeling at my leisure while I wait for home values to regain strength. And btw my home value is where it was at 16 months ago and has in the 5.3 yrs since I’ve owned it, gone up almost 29%. In addition the County Tax assesor knows nothing of what has been done on the interior so my value is actually stronger than it looks.
For those of you who are not in this position it would behoove you to get a refi going and stay on top of the info. This site is a good one, as is bankrate.com. Stay informed. It took me almost 2 years for the rate to reach my target, though I missed in March.