California Homeowners: Act Now To Refinance Your Home Before It's Too LateThere has never been a better time to refinance your home.That's because of a little-known government program called the
Home Affordable Refinance Plan® (HARP). This allows Americans to refinance their homes at shockingly low rates, and reduce their payments by an average of $4,130 a year!
But here's the catch >
- like most government programs, this is likely temporary. Currently the program is set to expire on December 31, 2015. But the good news is, once you're in, you're in. If the thought of a lower payment or fewer years on your mortgage sounds appealing, the time to act is right now.
This is unknown to many, but the Home Affordable Program is for the middle class. If your mortgage is $625,500 or less (unless you live in a high-cost area then the loan limits may be higher), you most likely qualify. Basically, the Government wants banks to cut your rates, which puts more money in your pocket (which is good for the economy). However, the banks aren't too happy about this - here's why:
- You can shop several lenders, not just your current mortgage holder
- Your home's Loan-to-value (LTV) can be 80% to 125%
- The average monthly savings for most eligible Americans is $345. Can you use an extra $345 a month?
- Many homeowners not only save every month, but depending on their current rates, they can also shorten their term.
This often overlooked method to lower your payment (and continue to make the higher payment by directing the excess to the principal) is a great way for you to pay off your mortgage in a shorter period of time, all the while saving more money in interest over the life of the loan.
But you do have to act before rates rise!