(03/16/2010) Even though national average mortgage rates have been hovering below 5.25% for the past month or so, many borrowers have not refinanced their current home loan, even though their current rate may be over 6%. Informa Research Services, a subsidiary of Informa plc (LSE: INF), passes along important information from AimLoan.com to help consumers who could save money by refinancing their current mortgage.
According to AimLoan.com, “the 4.2 million homeowners who refinanced their mortgages last year are saving an average of $2,600 annually.” By lowering the rate on existing mortgages, homeowners can benefit by having more money to spend, which helps boost the economy. One way to initiate this economically advantageous chain of events is by using the Home Affordable Refinance Program (HARP).
The HARP offered by both Fannie Mae and Freddie Mac is “designed for homeowners who have continued to pay their mortgage on time, but whose property values have fallen through no fault of their own” says Vince Kasperick, Founder and CEO of AimLoan.com.
HARP refinances must be held by Fannie Mae or Freddie Mac and must follow specific guidelines. Many homeowners are unaware of this option because some major lenders are limiting the number of HARP refinances they offer. To find out if your mortgage is eligible or find out more about HARP, please visit http://www.makinghomeaffordable.gov.
When looking to refinance your mortgage through HARP, its best to start by educating yourself about what constitutes a low rate. The easiest way to do that is by using online rate comparison tables. While these tables may not include HARP refinance rates, it is one of the best ways to find out what rates are currently being offered by lenders in your area.
