Tuesday, July 21, 2009

Refinance - Best Rates Are Out There For You!

Refinance at the best rates is an objective of many home owners in the current economy. With national unemployment inching towards 10%, Americans are doing everything they can to save an extra dollar. Now that data has been released that suggests that the subprime mortgage crisis may cause unemployment to reach 12%, Americans are going to get very stingy with the money they make. One of the first places they want to cut payments is their mortgage.

Refinancing is never an easy task. After the subprime mortgage crisis, it got even worse as lenders had the recent memory of many financial institutions losing everything. The lending institutions wanted nothing to do with anyone that had an financial risk. This made it almost impossible to refi a home unless you had been paying on the home for over a decade.

President Obama released this and created the Making Home Affordable plan to make it easier to refinance and get the best rates out there. With the Making Home Affordable Plan home owners were allowed to apply for a refinance if they had a loan to value of 105%. Just recently, that percentage was increased to 125%. In essence, you could be 25% underwater and still have an opportunity to get a refi.

The question we must all ask is "will this help the economy?" It is hard to tell right now as we are still deeply in a recession that is seeing the unemployment rate rise. Until we see some improvement in the unemployment rate, it is likely this recession will continue forward.

By: Jesse W.

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Tag : mortgage,mortgage rates,mortgage refinance,mortgage loans