Helpful Mortgage And Real Estate Advice

Reducing Expensive Mortgage Payments

By on September 3, 2014 in Mortgage Programs, Uncategorized

With high interest rates and some remaining unemployment from the Great Recession, you may be struggling to stay current on the payments to this day. Although it may sound too good to be true, there is a government-backed program that helps you reduce monthly payments with a refinance.

HARP Basics

HARP is a program designed for the middle class. The idea stems from economic stimulation. When the middle class fares well, the entire economy receives a boost with consumer spending. Because you’re placing all of your disposable income into the monthly payment, you can’t use the money for other items to keep the economy thriving. Essentially, you qualify for HARP if you have a loan worth $625,000 or less. An average yearly savings with a new HARP loan is $3,000. This substantial savings is your ticket to a more comfortable payment, but you must apply quickly to avoid the expiration date in 2015. Even if you’re underwater, owing more money on the loan than the property’s value, you may be the perfect candidate for the Home Affordable Refinance Program.

Have you been waiting for a chance to refinance to help you reduce your high monthly mortgage? Mortgage Home Base can find the right lender that can guide you through the entire process.

Your Potential Savings

By removing about $250 off each monthly payment, you free up extra funds to put toward home improvement or even back into the principal. Depending on your new loan’s structure, you may have a shorter time to pay off the amount, such as 20 years instead of 30 years. You’ll even benefit from deferred payments. Because of the loan’s funding processes, you’ll miss up to two loan payments during the transfer. The interest rate could drop as low as 3 percent, making your loan one of the most affordable in the mortgage industry.


Why Haven’t I Heard About This Before?

Unfortunately, many banks aren’t advertising this government program because it hinders their ability to make money off your loan. They may even lose you to another lender. Under HARP, you’re allowed to shop around for the best rates. The loan can even have a loan-to-value of 80 to 125 percent. With this much leverage regarding your loan, you could find several competitive quotes for your next mortgage.

Where to Start

It’s natural to start the HARP process with your lender. However, you can also go online to find other competitive quotes. The key is to have many quotes to compare. Every lender has a different quoting strategy. In the end, you want a low interest rate with a shortened term length. Principal forgiveness could be an option, depending on your property and finances. It never hurts to look around to find the best deals.

Mortgage Home Base understands that time is of the essence and has matched many homeowners just like yourself with a HARP Refinance loan professional licensed within their state in as little as 5 minutes!

Speaking with a mortgage professional is your first step to start the HARP program. Regardless of your financial situation, there is an answer to your mortgage issues. From lowering the interest rate to forgiving part of the principal, lenders use the HARP program to help you out and gain a new mortgage account, usually depending on the institution. Remaining in your home is the ultimate goal for any HARP loan recipient.

Tags: , , , , , ,

About the Author

About the Author: Jessica Lucas is the managing editor for Mortgage Home Base, a top real estate finance blog dedicated to helping borrowers and home buyers understand the home loan process. Follow Jessica on Google +, and share your comments here. .
Have A Question?

© MortgageHomeBase