Many people seem to have strange, confused or downright false ideas about the Home Affordable Refinance Program, also known as HARP. It's designed to help homeowners with negative equity, and it's helped those who qualify. Read on to see what HARP-related myths are untrue, and how the program could potentially…
I couldn’t find a good picture of our house, so I thought I’d share a video of our back door – starring our dog Murdoch. His enthusiasm for coming inside matches our enthusiasm for refinancing and saving money every month!
My husband and I bought our home in 2008 using an FHA loan. We were lucky to get a home that we loved in a great neighborhood for a price that fit in our budget. Working at Quicken Loans, it’s hard not to notice that mortgage rates have been at record lows and I began to wonder if we could refinance our house.
Like a lot of people, I was concerned with our property value. I started using property value estimating sites to research what our home value might be. I was shocked to see that according to these sites, in just two years, our property value decreased $20,000. I assumed that there was no way we were going to be able to refinance. I continued to play around with our mortgage amortization calculator and dream of a time that we would be able to refinance.
Suddenly, I came to my senses. Why was I making an assumption about our ability to refinance? Sure, I saw what a website said our home value would be, but why wasn’t I personally talking to someone about our specific situation. I contacted a Home Loan Expert and before I knew it, I was in process and working toward closing our FHA streamline refinance.
Because we are in an FHA loan, we were able to refinance without a new appraisal. Refinancing for us means that we’ve lowered our mortgage rate by nearly 2 points (or 2%) and we’re saving $200/month which is huge for us! Even with our original mortgage rate, we were able to afford an extra payment each year which reduced our 30-year term by about 10 years. We refinanced to another 30-year FHA loan, but we still plan on making that extra payment each year. We’re going to pay our loan off sooner and save $200/month. It’s pretty amazing.
It goes without saying that my experience throughout the loan process was excellent. My entire closing team made sure that the process went smoothly and we signed our closing papers at our favorite bar! That’s right – Quicken Loans will meet you wherever you want for your closing. I really enjoyed sipping on an adult beverage while legally finalizing our savings.
Every situation is unique, but if you’re in an FHA loan and you have a mortgage rate over 4.5% and you haven’t talked to a Home Loan Expert about your ability to refinance – what are you waiting for? The average FHA mortgage rates have hit a new record low – clocking in at an average of 4.19%. With the holiday season right around the corner, now is the perfect time to refinance your FHA loan. Contact a Home Loan Expert today.