Here is how you can make use of programs to refinance your mortgage
Are you considering refinancing your home? This may not be possible without the use of a program. HARP helps a lot of people when refinancing mortgages. This allows you to refinance at low rates so that you save some cash on housing and have enough cash flow for your expenses.
The program can allow you to move to a short-term loan without affecting your monthly payments. It gives you the chance of transferring your loan from an adjustable rate mortgage to a fixed rate type. Refinancing using HARP program allows you to make low payments so that you can pay the mortgage within a few years without incurring high interest.
Refinancing on your own makes you incur closing costs such as appraisal fees. Doing it using the program is more beneficial since you end up paying minimal closing costs as the appraisal is waived. Refinancing under HARP does not also add private mortgage insurance if you did not have it before. It also gives you the chance to remove the name of a person in the loan, for instance, an ex-spouse.
The program also does not consider factors such as bad credit when you need to refinance a loan. It can, therefore, save you from a financial situation when your credit history is poor. You can even refinance a second home or investment properties using the program.
The rates and fees of refinancing with HARP are also lower than refinancing on your own. You can easily document your assets and income thus increasing your chances of getting approval for the loan. Refinancing on your own can be cumbersome since you have to follow the procedure of applying for a loan. The home affordable refinance program makes things easier for you and saves time.
Due to the assurance of low rates, it increases the likelihood of repaying the loan and reduces the risk of default. Being stuck in a home makes a lot of homeowners default on their loans as some think of filing for bankruptcy. With the minimal risk of default, you would not consider such options.
Remember that when you are refinancing with the program, you still have to settle some of the closing costs. You can decide to roll some of the costs into the loan so that you don’t have to pay them from your pocket. These costs may form part of the interest which you will be required to pay together with the repayments. HARP ensures that the rates remain low to avoid overburdening you.
For you to save money from refinancing using the program, you should run the numbers to assess that this is the best option for your situation. For you to use the program, feel free to consult a mortgage lender who handles such applications. Though the program comes with unique rules, various lenders may have some different rules. Approaching financial planners and different lenders can help you get the right one to help you refinance with the program.