Should I Refinance? Obama Says Yes.
If you’re on the fence about taking the refinancing plunge, you should investigate now. The US Government is giving the real estate market a kick-start, and the time could be right.
For more details about it, read Jeffery’s article “Mortgage Rates Hit Record Lows,” posted in January here at Queercents.
Here’s some useful and practical tools and information to help you determine if refinancing is right for you.
Making Homes Affordable – the US government estimates that 8 million Americans are eligible for government mortgage programs. Are you one of them? Click here to find out.
Turns out I’m not. But I may refinance. I’m at 5.875% and mortgages are below 5%. Obama says 7-8 million Americans can benefit from refinancing right now.
Pinyo over at Moolonamy offers some great advice on the pros and cons of refinancing.
Here’s a great refinance calculator to see if it makes sense dollar-wise. Here’s a second one should you not like the first.
And finally, if you need some help clearing up your credit, first check out the US government’s National Foundation for Credit Counseling.
On a final side note, first time home buyers may want to look into “Taking Advantage of the $8000 First-Time Home Buyer Tax Credit.“
Photo Credit: PicApp
Great resources, Lisa.
Lisa: We’re four years into our 7 year interest-only mortgage, so we plan to refinance at some point in the next three. The issue for us is that since the economic crisis there hasn’t been a supply of ‘jumbo’ loan financing available… a must for many homeowners in California. This topic is actually on my list to post about because Bank of America recently announced that they are going to offer these high-value loans for low-risk borrowers.
By the way, I clicked through to the Moolonamy post about the pros and cons of refinancing. One word of caution about refinancing to raise cash by unlocking your home equity… the bank can suspend these at any time (note the fine print!) and they will… I wrote about it twice: once about our equity line on our current residence and another on one of my rental properties. We never used these funds, but yet were out the closing costs, etc. of setting them up. Just beware – especially in markets where properties are still depreciating.
It’s too bad that everyone isn’t allowed to re-fi under the governments mortgage program. While it turns out my mortgage through GMAC is backed by Freddie Mac (which is one of the qualifiers) I am not behind on payments, the percentage of my mortgage in relation to my salary is not high enough, etc – so I don’t qualify for help. Even though some of the great rates they are giving out could greatly change my payments and my life.
I know that there are many people who have lost their jobs and many were talked into loans that they should have never gotten. However, I also know many people bought more home than they knew they could afford. I watched my neighbors move in and professionally landscape their yard while I threw bags of seed out hoping it would grow. I saw them go out and buy (well, probably lease) 2 brand new vehicles while I continued to drive my 10 year old vehicle. I watched them unload their new 50 inch plasma TV while I went inside to watch my 15 year old 25 inch TV. I saw them go out and buy the outdoor patio furniture, fire pits and outdoor lighting for their weekly deck parties while I sat outside wondering why my damn grass seed still wasn’t growing! And trust me I wasn’t jealous of any of their ‘things’ cause I knew what was coming. However it does piss me off that I get to help them now through my tax dollars. They get a better rate on their mortgage, they get to keep all their toys while I get nothing.
Why isn’t there something for those of us that have done and will continue to do the right thing? Why can’t we get a better rate – without paying thousands of dollars to re-finance. I would jump up and down even if I could get a 1% drop in my rate. Can’t help but sometimes feel a little screwed about the whole thing.