Obama Refinance Plan – Making Home Affordable Helps You in 2010
Posted on | December 27, 2009 | 1 Comment
The Obama refinance plan was created to help homeowners gain access to the current low mortgage interest rates available. If you are looking to refinance your home in 2010 then you might want to do some research on the Making Home Affordable website. This website is quite extensive and can give you a great amount of information on the current mortgage market.
Please understand that if you want to refinance in 2010 you are going to have to have equity in your home and a very good credit score. If you have a credit score below 740 and have very little equity in your home you are not going to be able to qualify for the low refinance rates you see advertised around 5%. Unfortunately, the lending industry has greatly changed and they are becoming a little more strict with who can refinance.
Pres. Obama’s goal is to allow all homeowners to have access to these low mortgage rates. Unfortunately, it is going to be nearly impossible to force lenders to allow people to borrow money at low rates. The fact that you have made bad financial decisions in your past is going to cause the interest rate on your loans to increase. This is just how the lending industry works.
Just because you cannot get a low interest rate does not mean that you will not be able to refinance in 2010. Please make sure that you know that most lenders are willing to help you go through the refinance process. The interest rate you get will be greatly dependent on the equity in your home and your credit score but if you can save a full percentage point on your current home loan then it would be smart to refinance now.
If you cannot save a full percentage point on your home loan rate then it would not be a good idea to refinance as the refinance costs will outweigh the benefits in the future. An important step of the refinance process is the appraisal step and you might want to make sure that you have a good grasp on what your home will appraise for before you are let down.
Author: Mike Garner
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December 27th, 2009 @ 10:46 pm
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