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Digital News Report – Mortgage interest rates are so low that many homeowners are looking to lower their mortgage interest rates by refinancing it. A common reason why you would refinance a home loan would be to get a lower interest rate. Another reason homeowners remortgage is because they have an adjustable interest rate and are looking for a fixed rate loan. Another strategy for refinancing your home loan is to extend the term or shorten the length of the loan. Some individuals want to lower their monthly payments with an extended term loan, while others will want to hurry up an pay off the loan over 15 or 20 years. The shorter the mortgage loan term, the lower the interest rate becomes.
Refinancing your mortgage loan can be a difficult thing to accomplish with the downturn in the real estate values. In order to refinance, you sometimes will need to have 20 percent equity in the home to refinance. If you don’t have the equity you still might be able to refinance with the Obama’s government Home Affordable Refinancing Program.
This is part of the government Making Home Affordable program, were some homeowners that are current with their mortgage payments might be able to refinance the home loan. Not everyone will qualify for this government refinancing program. You have to be an owner of a one – to – four unit home, and the home loan has to be guaranteed with either Fannie Mae or Freddie Mac, and you have to be current with you mortgage payments.
If you meet the qualifications to participate with the government refinancing program, you will need to collect your mortgage states, payment stubs, and other income documentation, your most recent tax return, any second mortgage information on the home, credit card balances and minimum payment amount due each month. You will also need to itemize any other monthly expenses that you may have such as a car loan or a student loan. Once you have all of this information together you are ready to contact your mortgage lender and ask them about the Home Affordable Refinance application process. They should be able to get you started but the government website does warn that there may be a little delay for processing the applications.
If you don’t qualify for this government home mortgage refinancing program, you still might be able to participate in the home loan modification program, or the government foreclosure alternative program. You can find out all about these programs at makinghomeaffordable.gov website.
You can still shop around for a better mortgage refinance from other lenders if you are unable to take advantage of the government programs. Home mortgage rates are at historic lows, and refinancing home loans could save you a bundle over the long run. You would shop around for the best refinance home mortgage loan rate being offered for your property.
By: Victoria Brown