Obama Refinance Plan – Save on Low Mortgage Rates Today
Posted on | December 29, 2009 | 1 Comment
The Obama refinance plan was created to help homeowners save on low refinance rates today. Over the last 12 months mortgage interest rates have been very close to all-time lows. There have been some ups and downs along the way but for the most part the 30 year fixed mortgage rate has been around 5%. With mortgage rates this low many homeowners can save greatly by refinancing today.
Pres. Obama has urged all mortgage lenders to allow all homeowners to borrow money to refinance their home. Please do not think that this means that you will get a refinance rate of 5% if you are under water in your home and have a very bad credit score. These rates of 5% are only for the borrowers who have equity in their home and have a very good credit score.
Just because you cannot get a 5% interest rate on your home refinance does not mean that it will not benefit you. If you can save one full percentage point on your mortgage rate then you can end up saving money over the long run. If you can not save one full percentage point you are going to find that refinance costs outweigh the benefits of going to the mortgage refinance process.
You will never know with 100% accuracy what mortgage interest rate you qualify for until you go through the mortgage application process. You may be able to get a rough estimate from a lender or from an online agency but you will never know for certain what rate you qualify for. With this being the case it is a good idea to go ahead and submit a mortgage application today.
There are many mortgage calculators available online that can help you determine if it is right for you to refinance today. After you have determined your interest rate you will better know what your monthly payments will be and how long it will take you to save a significant amount of money on this refinance. As stated earlier, the general rule is that you will need to save one full percentage point on your home loan rate.
Author: Heather Best
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December 29th, 2009 @ 11:24 pm
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