Refinance Mortgage HQ

Information on Refinancing Mortgages

Home Affordable Refinance Program (HARP)

July 8th, 2009

The Home Affordable Refinance Program has been put in place by the Obama administrations to help steer delinquent home owners away from foreclosures. The early results of the program that is believed to be able to help 4-5 million families in dire financial situations is bleak. There were 13,000 HARP refinancing cases for June. At this rate it will need 300 months or 25 years to provide help to these 4-5 million families, meaning it will not meet the aggressive goal set for June 2010.

http://www.washingtonpost.com/wp-dyn/content/article/2009/07/07/AR2009070702452.html

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Paying Points to Refinance

July 8th, 2009

Paying a point to refinance a mortgage means paying a percentage of the total loan up front. A higher mortgage interest rate often has no points, but a lower rate mortgage will often come with points that the borrower pays up front. The important thing to remember is to figure out the break even point for the life of the mortgage if you were to pay for points to refinance.

http://www.boston.com/business/personalfinance/managingyourmoney/archives/2009/07/should_i_pay_po.html

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HARP Refi Plus

July 7th, 2009

Why stretch out a $1.05 to ten years, when you can refinance to $1.25 and stretch payments out to twenty years? This is what the Home Affordable Refinance Program really looks like if you do the numbers.

$1.05 / 10 = .105 per year

$1.25 / 20 = .0625 per year

Homeowners are basically taking on more debt to finance existing debt. Instead of paying off everything in ten years, they are chained to the paying off the mortgage for a total of twenty years at a lower payment, but really at a hefty increase at present day value (the above example, the borrower took on another nineteen percent debt to put themselves deeper in the hole).

While failed corporations get bailout money, fail home owners get to owe more money.

http://www.examiner.com/x-612-Residential-Real-Estate-Examiner~y2009m7d7-Home-Affordable-Refinancing-Program-Expanded

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Predatory Lending

July 6th, 2009

If you are looking to refinance a mortgage, make sure you are not dealing with sharks who practice predatory lending. When you are taking out more debt to cover existing debt, you are basically digging yourself a bigger hole.

http://seekingalpha.com/article/147018-new-affordable-fhfa-loan-program-sounds-like-predatory-lending

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Refinance Commercial Real Estate

July 6th, 2009

If you are looking to expand your commercial real estate, the US Small Business Administration’s (SBA) 504 loan lending may be the perfect financial vehicle for the job. Borrowers qualify for $50,000 on every job they are creating or retaining on the commercial real estate projects. Most loan sizes range from $200,000 to $10 million.