President Obama’s State of the Union address created a lot of buzz about the opportunity to save $3,000 with mortgage refinancing at historically low rates. The President promised to deliver legislation to Congress aimed at helping “responsible” homeowners qualify to refinance their homes.
This new plan allows homeowners under Freddie Mac and Fannie Mae to take advantage of mortgage rates today without qualifying based on credit or equity. Under this new HARP like program, you will not be required to pay for a new appraisal of your home’s value. The President has already overhauled the original failed HARP program by Executive Order, eliminating the 125% loan-to-value requirement.
The President plans on paying for this new program by charging banks and lenders a small fee, which would ultimately be passed on to homeowners; however, this plan would not increase the deficit. President Obama stated it’s time for the banks rescued by the bailout to repay their “deficit of trust.”
Analysts indicated that some 1 million households could be helped by this new mortgage refinancing program. This is a fraction of the six million homeowners undergoing foreclosure and the Administration has not finalized the details, meaning everything you’ve heard to this point is speculation.
You can learn more about refinancing your home with today’s best refinance rates without paying unnecessary discount points or junk fees by checking out my free Underground Mortgage Videos.