The Obama Administration has initiated several programs designed to help financially strapped homeowners retain their homes. The specifics of the these plans can be found on the FHA or HUD website. But what about the homeowners who are keeping their heads above water for now? Maybe they should consider re-financing their present home. Why? If you have a ARM (adjustable rate mortgage) or your APR (annual percentage rate) is over 6%, this could be a wise thing to do. I will insert a disclaimer here – be sure to consult with a qualified lender before you make any decision. But back to the re-financing; mortgage lenders are advertising 30 year fixed rate loans at 4.5% for a conventional loan and 4.75% for a FHA or VA loan. By re-financing now you can lower your monthly mortgage payment significantly if you have a fixed rate mortgage. The difference on the ARM might not be as great this year, but what about the next few years? You can lock in a rate that is the lowest it has been in the last 50 years or more. If you plan on staying in your present home for awhile, this is a huge financial benefit. If you don’t own a home, consider taking the plunge now, not just for the low interest rate, but also – if you are a first time home buyer or have not owned a home in the last three years – you are entitled to a $8,000. tax credit as long as you close on the purchase of your home before November 30, 2009. This is really an opportunity for someone to purchase a home and their monthly mortgage payment could be less than what they are paying for rent right now. The choices are yours – just know that there are options and opportunities out there. Again, consult with your lender, tax accountant and/or attorney before you make any decisions. We work with several great loan officers. If you need a referral or have any questions, please contact me. I can be reached at (630) 420-1300 or email me at skip@juckins.com . You can also visit our website at www.Riverwalk-Realty.com . If everything is correct for you, move forward but do it now. Remember – opportunity knocks but YOU have to open the door. ‘Til next time………….
More Help for Homeowners
Advertisement
