IS THE RIGHT TIME NOW? - How homeowners are taking advantage of the government before time runs out to profitably refinance their homes.
The Federal Reserve recently lowered interest rates.This is big for those seeking a fairer deal on their mortages.
This is great for homeowners who deserve a better rate on their homes. The Federal Housing Finance Agency (FHFA) ended its Home Affordable Refinance Program (HARP) on December 31, 2018, but this recent news from the Federal Reserve has opened the floodgates for new programs.
FACT: According to FHFA, HARP-eligible homeowners had saved approx.$2,400 per year on their mortgage payments. Some were able save much more.
Today, there two new federal programs offer a permanent refinance solution for homeowners. These may not last long as our economy is in a fragile state.
So what is the benefit of refinancing your home?
Your interest rate and monthly payments will be lower, and you will build equity faster.
But there's also a major benefit in future-proofing your investment. It helps to get locked in a rate that is in step with some of the lowest Federal Reserve rates in economic history. Once the rates go up, you've lost your opportunity.
It wasn't always this inexpensive to pay off your home. Interest rates in the early 1980s were nearly 20%
This can happen again, which is why it makes sense to refinance now before the interest rates shoot up again. Once the economy hits a recession (or heaven forbid a depression) banks will be less able to give out good refinancing deals. And the government may not be able to afford to offer such a program again.
With interest rates still near historic lows, you might benefit by refinancing with one of these products if you’re upside down in your mortgage.
This will not always be the case.
Lower monthly principal and interest payment
s will enable you to do other things with your money.
You can focus on paying down other debts that you may have with a lower interest rate on your home.
On average HARP was able to save homeowners about $2,400 a year. But these new government programs are possibly be even better.