To refinance your mortgage in this market is not only financially prudent, but is also very financially attractive thanks to new policies recently put in place by the Obama administration.
If you are a homeowner who plans to be in your current household for at least another 3 years, it would behoove you to at least consider refinancing your mortgage.
Interest rates are at historic lows but will not stay this way forever.
Along with all time low interest rates, the Obama administration in an attempt to stabilize the housing market, has enacted several policies and incentives that make it very financially attractive to refinance your mortgage.
The Obama administration recently passed the Mortgage Assistance Program which is intended to provide financial incentives to homeowners who are currently struggling to pay their mortgage.
This plan was put into place to slow down the pace of foreclosures and help struggling homeowners refinance their mortgage into a more affordable one.
If you qualify for this mortgage assistance program, the government will cover the majority of your closing cost that comes along with refinancing your mortgage.
The typical closing cost on a mortgage refinance is 2-3% of the mortgage amount.
So if you have a $200,000 mortgage, the government could end up covering up to $6,000 on your behalf if you qualify.
You will want to talk to a mortgage refinance specialist to learn more about the different ways you can qualify for these government incentive programs.
The best mortgage professionals will know how to increase your chances on qualifying for these government grant programs.
They will also know all the loopholes that exist of how to get the best deal when you refinance your mortgage.
Even if you are not struggling to pay your mortgage, taking advantage of all time low interest rates and refinancing your mortgage in this market can be a wise financial decision.