Is It Time To Refinance?
November 25th, 2009 categories: Chicago Real Estate News
The results of the federal government’s Home Affordable Mortgage Modification program have been disappointing to many: Since the Obama administration launched the foreclosure-prevention program in March only 10,000 mortgage loans across the country have been permanently modified
A U.S. Treasury report says that 650,000 mortgages are at least in a trial modification. Even that number, though, is disappointing to many, considering the high number of housing foreclosures that the country continues to suffer. The program is supposed to keep people from losing their homes by encouraging mortgage lenders to work with struggling homeowners to modify their mortgage loans. The ultimate goal is supposed to be lower mortgage payments.
A new story on the Forbes Web site, though, suggests that the lesser known half of the Making Home Affordable program – the part focusing on making it possible for homeowners to more easily refinance their existing mortgage loans – is working much better.
According to the Forbes story, the Federal Reserve’s efforts to lower mortgage rates combined with new U.S. Treasury rules for refinancing mortgages backed by Fannie Mae and Freddie Mac has been far more successful. These efforts have resulted in more than 3 million mortgage refinances being done during the same time that the loan modification program has only brought in about 10,000 modifications. The refinancing activity has reduced homeowners’ payments by an average of $150 a month.
This is a great time to refinance: Mortgage interest rates on 30-year and 15-year fixed-rate mortgages are still at record lows. The problem is that many homeowners, including those in the Chicago area, owe more on their homes than what they are worth.
But if you’re not in this situation, you might want to check out the Web site of the federal government’s Making Home Affordable program. You might still qualify for a refinance even if your home is worth only a bit less than what you owe on it.
The program makes it easier for homeowners to refinance their loans. It’s a boon for the many homeowners who desperately want to take advantage of the country’s low mortgage rates.
If you think you’re paying too much each month for your mortgage loan, consider refinancing. There’s rarely been a better time to do it.
