The legislation is called the Home Affordable Refinance Program (HARP) and it does three really important things for homeowners.
1) Waives Refi Requirements
Obama’s mortgage program waives certain refi requirements for homeowners, making it much easier to qualify and take advantage of today’s still historically low rates. Some examples of requirements that have been waived are the need for an appraisal and credit score requirements. With requirements like these gone, millions of homeowners now qualify to refinance. The problem is people don’t know the program exists and they don’t know how much they could save by refinancing .
A free service that can help you see how much you could save by refinancing is LowerMyBills.com. You might be shocked at how much their network of lenders can save you.
2) Reduces The Amount Homeowners Owe
In his State of the Union, Obama told homeowners that if they refinance at today’s rates they could save up to $3,000/year. It’s amazing how many homeowners have sat on the sidelines, getting ripped off by banks as they keep paying mortgage rates in excess of 5%. If the rate you’re paying on your mortgage is above today’s historically low rates, you should consider refinancing.
Think about how much money $3,000/year is over the life of your loan. If you have 25 years left, that’s $75,000. If you’re a homeowner, and you haven’t looked into refinancing recently, you should use this easy tool. It takes about 3 minutes to complete and helps you take advantages of today’s rates.
3) Pay Off Your Home In Half The Time
The President’s refi plan encourages homeowners to shorten their loans. Homeowners who switch from say a 30 year to a 15 year fixed rate mortgage not only pay their homes dramatically faster but they also get significantly lower rates. The savings for homeowners who opt to go this route end up saving huge. Savings can be as much as $805/mo.
Not only that, these homeowners are done with their mortgages altogether up to 15years faster. If you want to learn more about all the loan options available in the market, LowerMyBills can help you find out what would be best for you.
source: smarterlifestyles.com
