Refinancers, HARP for this!
Some time ago, you bought a home. You started in with your 25% down. And... poof, today, you have nada, zilch, nothing, no equity in your own home. It's gonzo plus a mortgage refinance is difficult.
Several of your peeps are capable of doing home financing refinance and change from a 5% mortgage with a 4% mortgage. Their loan payment drops by $200 to $300. Nevertheless, you weren't capable to refinance when your house is worth way less than your mortgage. Doesn't that merely stink!?!
However your time could possibly have come... enter HARP 2, the brand new, mortgage refinance government program. HARP represents Home Affordable Refinance Program. Obama rolled out HARP 1 two years ago but a majority of homeowners couldn't do a mortgage refinance because the value of their apartment was worth lower than their mortgage. Buzz kill.
In case your mortgage is backed by Fannie Mae or Freddie Mac, you may well be capable of refinance even though your property is worth under your mortgage. This may be within the cards during the early 2012.
So what in case you do?
The first step - take 3 Advil, a hot bath and acquire a good night's sleep. Then call your mortgage company, broker, loan person, or perhaps the bank that has your mortgage and have in case your loan is backed by Fannie or Freddie.
2 - Don't flake from paying your mortgage. Continue making those payments and stay current. Furthermore, i would love you to become able to show verification of income from job, just like a paystub, taxation assessments, etc. Sweet!
Step three - Take into consideration what you really are planning to do with the extra dough. If you are using it as being another principal payment on your own mortgage, you can shave 3-6 years (ballpark) from the lifetime of your mortgage. How cool is!
Step 4 -There isn't any step four!
But wait merely a minute! Where was HARP 2 couple of years ago? If your government would have implemented HARP 2 earlier, the consumer would be in better shape. Total debt for that American homeowner could have decreased much more high may have been fewer foreclosures. In order for us to get out of this property mess, everyone needs to look at a hit (a loss of revenue): our government, the banks, and us.
Additional information on HARP 2 will likely be released in mid November but in the meantime stay tuned in and place within...
