For many homeowners, mortgage refinance may
seem like a good option on more than one occasion throughout the
life of their loan. Mortgage lenders told The New York Times in a
recent article that unforeseen events such as divorce or volatile
changes in a home's value contribute to borrowers feeling the need
to restructure their finances.
Refinancing a mortgage on multiple occasions has its pros and
cons. In a positive climate for borrowers, where average rates are
lower on fixed-rate loans than they were when a homeowner
originally took out their mortgage, they have the opportunity to
lower their monthly payment significantly.
According to the news source, this is especially true for
borrowers of "jumbo mortgages," where borrowers take out mortgages
that exceed $600,000. By refinancing to a lower interest rate, even
the slightest reduction could save the homeowner hundreds in
monthly payments.
The Times reports that although mortgage refinance may
significantly lower a monthly payment, refinancing more than once
may result in added taxes imposed on the borrower by the federal
government.
Currently, the government is working to increase the resources
available to homeowners interested in refinance by making banks
lower the standards of eligibility for borrowers who are looking to
decrease rates.
Over the past year, amendments have been made to the
government's
Home Affordable Refinance Program (HARP 2.0) that removed the
loan-to-value cap of 125 percent that previously restricted the
number of applicants eligible to refinance their government backed
loans.
For homeowners looking to refinance a mortgage another time, or
take their first go-around at refinancing their loan, rates have
never been lower according to a weekly report from the Mortgage
Bankers Association. By contacting New Penn Financial, borrowers
can learn if they qualify for lowered interest rates and see their
best options in restructuring their loan.
Borrowers Applying For Refinance At Rates Not Seen In Years
Home Values Reach Yearly Highs as Interest Rates Hit All-Time
Lows