• October 8, 2014
• By David Worley
• In David Worley Fannie Mae
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• Tagged: David Worley Fannie Mae HARP refinancing

Recently, a government program called Home Affordable Refinance Plan (HARP) has been helping Americans refinance their homes at extremely low rates.  On average, Americans are reducing their payments by $4,130 per year.  So if you have been thinking about a lower payment on your mortgage, now is the time to start refinancing your home.  Unfortunately, most home refinancing programs do not last long.  HARP expires in December 2015, so if you are thinking about joining HARP, make sure you know all the important details so that you can get your bank rates significantly lowered as soon as possible.

If you are in the middle class and your mortgage is $625,500 or less, you will most likely qualify for the Home Affordable Program.  By cutting your bank rates, you can save an average of $345 per month and can shorten your term, think of this as an interest-stimulus package.  Often, HARP is an overlooked method because most banks want to keep you at the rate you financed originally, which was most likely much higher than it should be right now.  This program also allows you to use several lenders instead of only your current mortgage holder, another thing banks want to keep you away from.

With HARP, Americans can pay off their mortgage in a shorter amount of time, while simultaneously being able to save more interest money over the loan’s life.  And finding these rates is not as hard as you would presume.  There are many free websites you can look for online that can compare various mortgage rates for their customers and allow them to decide which one one works best for their financial situation.  Just be weary of spam and being taken advantage of, make sure the website you use is popular and trustworthy.

HARP is a great new program that helps Americans refinance their homes at a low rate, but always remember to make the right decisions when refinancing your own home.  Before you commit to a particular refinancing program, be sure to set a goal that can be accomplished in a specific amount of time.  Reducing the interest expense and debt consolidation are two of the most important goals when it come to refinancing.  Combining two mortgages, such as a first mortgage and a home equity loan, under a single fixed rate mortgage is a smart way to level out your payments.  If you want to reduce your monthly payment, reducing interest expense is the way to go.  Either way, make sure you are doing what’s best for your own financial situation, and be sure to explore every option.