-
Obama Mortgage Refinance Plan – Will It Help You?
9 CommentsThe Obama Mortgage Refinance Plan has been given an extra boost recently. In the original refinance plan, home owners with a 105% loan-to-value on their mortgage were able to refinance at lower mortgage rates. Now that the economy remains in a recession and the housing market has yet to see a bottom, Obama has extended that loan-to-value ratio to 125%. This means that home owners that are 25% underwater are capable of applying for a refinance.
Making the prospect of refinancing even more alluring is the fact that mortgage rates continue lower. Average mortgage rates were around 5.2% last week and they were falling as the week concluded. Over the weekend, rates on the 30 year fixed rate mortgage have dropped to 5.1%. It is very possible that we will see daily mortgage rates below 5% in the very near future. If this does happen, look for a swarm off mortgage applications with most of them being for a refinance.
Another incentive that the Obama mortgage refinance plan offers is that it encourages lenders to actually lend money; what a novel idea! As many of you know, at the end of the Bush administration and the beginning of the Obama administration, many lenders were hoarding their money and not “lending” it. Financial institutions were so stingy with their money that the government had to step in and offer incentives to these lenders to actually give borrowers a chance.
Since March, many of my friends and family have had the chance to refinance under 5%. It is an amazing feeling to know that you will pay on a mortgage that has an interest rate of under 5%. It is hard to believe that this opportunity it coming again, but it sure looks that way. If the Federal Reserve Bank continues to buy up US debt, it is almost certain that we are going to see mortgage rates drop under 5% again in the very near future.
Even if rates are sure to drop in the future, it is a good idea to go ahead and start the refinance process. One of the biggest problems that Americans have is that they love to procrastinate. If an activity is outside of our “comfort zone” it is likely that we are going to wait until the last minute to do it and then we aren’t going to sink our total effort into it. Getting a mortgage was the biggest financial decision of your life, why not take the time and effort to refinance at a rate that could save you hundreds of dollars a month.
There are many great resources available to help you. If your local bank or mortgage lender is not being a great assistance I urge you to go to Making Home Affordable. You could search through that site for hours finding useful information. Doing google searches for anything mortgage related will also bring up many useful internet resources.
Published on July 13, 2009 · Filed under: Uncategorized;
9 Responses to “Obama Mortgage Refinance Plan – Will It Help You?”
-
[...] in US debt. This is going to put the United States in a further hole in the future, but the current administration feels that you have to get out of this mess first, then we will worry about the [...]
-
[...] President Obama being such a strong advocate of education, student loan rates are going to continue to get lower [...]
-
Foreclosure Refinance - What Options Do You Have? - Economic Conversation said on July 13th, 2009 at 9:42 pm
[...] Home Affordable Plan. There are many parts of the plan that can help specific home owners. President Obama does not want you to be foreclosed upon, so let him help you [...]
-
The Financial Suite » Mortgage Rate Trends – Interest Rates Head Lower Into August said on July 14th, 2009 at 7:10 am
[...] and continued to buy more US debt throughout last week. There is VERY little doubt in my mind the President Obama is urging Bernanke to make sure that mortgage rates stay well below 5.5%. This sounds like a [...]
-
The Financial Suite » Mortgage Rates Forecast Shows Lower Interest Rates Ahead said on July 14th, 2009 at 7:10 am
[...] you have been debating on a home refinance, now might be the time to start doing some diligent research. There are many great Internet [...]
-
The Financial Suite » Interest Rate History Shows Low Mortgage Rates Ahead said on July 14th, 2009 at 7:11 am
[...] Overall, interest rate history shows that low mortgage rates are definitely ahead of us. If you have been considering refinancing, now is the time to start doing the research so you will be ready when mortgage rates go below 5%. If you aren’t willing to take the risk of waiting, now is also a great time to get a refinance. There is nothing wrong with refinancing at a rate near 5%. [...]
-
Interest Rate History Predicts the Future of Average Mortgage Rates - Economic Conversation said on July 15th, 2009 at 7:39 am
[...] There is a great article at Subprime Blogger about Interest Rate History. From the article: Overall, interest rate history shows that low mortgage rates are definitely ahead of us. If you have been considering refinancing, now is the time to start doing the research so you will be ready when mortgage rates go below 5%. If you aren’t willing to take the risk of waiting, now is also a great time to get a refinance. There is nothing wrong with refinancing at a rate near 5%. [...]
-
[...] if this housing market is going to continue to wither. President Obama is actually considering a housing plan in which banks own homes and the home owners who defaulted will continue to live in the house but [...]
-
Fixed Home Loan Rates Will Increase Soon - Economic Conversation said on July 16th, 2009 at 11:33 am
[...] am sure you have seen many options for refinancing an getting mortgage rates for under 5% so make sure and look into these as it may be the last [...]