Filed under: refinance.
Back in 2010 the government introduced a program called the Home Affordable Refinance Program, otherwise known as HARP. The reason for starting this program was because of the housing bubble, and the people locked into high interest rates. Though this is a win-win situation for virtually all homeowners, only about a quarter of those who qualify take advantage of the offer. Why? For one thing, many people don’t know about it – or they believe that it’s some sort of bail out. It’s actually just a way for homeowners to get federally backed refinances and it could save them hundreds of dollars per month.
Another reason that people are turning these loans down is because they think it sounds too good to be true. They are only offered to those who have paid their mortgages responsibly, and they allow homeowners to take out loans for up to 125% of the current value of their home – which helps out those who have loans that are now more than their homes are worth. Some people turn down this opportunity to take out a Houston refinance loan because of origination fees. However, due to the savings available those fees can be recouped in between 4 and 6 months.