While first time home buyers are out shopping for decently priced homes, homeowners are looking for relief. After the recent real estate market crash and overall economic downturn, many homeowners are stuck with a high loan to value amount (LTV), a high mortgage rate and not a lot of cash. In 2012 however, many homeowners have found their relief in the form of a refinance. With mortgage rates dropping to all time lows and government programs being created to make eligibility easier for struggling homeowners, the time to refinance is now. Are you going to become a part of the 2012 refinance boom?
All Time Low Mortgage Rates
Recently mortgage rates have hit the bottom. Being lower than they have for over a decade, the new lower mortgage rates are enticing many homeowners to look into refinance. This new rate trend is also helping to bring the mortgage industry back to life. Not only are borrowers seeing a benefit from the new rates but lenders are as well. With homeowners looking to utilize new rates and government mortgage products available for a refinance, mortgage lenders are seeing more business coming through the door.
Government Mortgage Programs
Recently the government has created a couple mortgage programs to assist with refinances. The Home Affordable Refinance Program and the FHA Streamline Refinance Program are two very well known, and newly created, government programs. Both were designed to assist homeowners who need a refinance but may not qualify because of a high LTV.
The HARP program, now known as HARP 2.0, was created to help Fannie Mae and Freddie Mac owned mortgage notes qualify for refinancing. For homeowners who do not have a Fannie Mae or Freddie Mac owned mortgage note and do not qualify for the HARP program, there is the FHA Streamline Refinance program. This FHA refinance, unlike other FHA loans, does not require an appraisal. It allows a homeowner who has an FHA loan with a high LTV to refinance with a new lower rate and not many questions.
Although these two programs are for Fannie Mae, Freddie Mac and FHA loans, they cover the main majority of homeowners who need a refinance. This is why 2012 is the year of the refinance boom. With all time low mortgage rates and government assistance in the form of new programs, homeowners are taking advantage. Also, as programs become more lenient on requirements more homeowners are utilizing them.
The future holds many changes for the mortgage industry. If you are not able to qualify for one of these two government mortgage programs, there are other options and more to come. Speaking with a mortgage banker is the best way to stay up to date with new programs and available options. They will have the best understanding of new programs and your situation. Also, if you plan to utilize an FHA loan be sure to speak with an FHA approved lender.
