MyRefi HARP 3 Simplify Refinancing
by Ask Kate Summer 2012
Introducing #MyRefi - aka HARP 3: The White House has just announced further intentions to simplify mortgage refinancing and cut through red tape. So what would it mean to your household if you could refinance at today's historically low interest rates? Or I should be asking... what needs to happen if you can't? #MyRefi, that's what. Or you may know the program as HARP 3.
Benefits of Refinancing Your Mortgage
Look at this example from the White House. If you've currently borrowed $200,000 at 6.5%, your monthly house payment is about $1350.
But what if you refinanced with #MyRefi - HARP 3 to reduce your mortgage rate to 4%? Your house payment would drop to about $950, saving $400 a month.
That's almost $5,000 a year!
But so far, roadblocks abound, preventing many homeowners from refinancing under Making Home Affordable HARP 2.0 program. In fact, you may be one of the homeowners who can't find a lender to help you. Perhaps you owe more than your home is worth. Or you don't happen to have a Fannie Mae or Freddie Mac backed mortgage.
While HARP 2.0 has helped a small number of homeowners, it has failed many more. Part of the reason is that the big banks still don't have to compete for homeowner business.
If you ran into the My Way or the Highway
attitude while trying your best to secure affordable mortgage payments, you understand what I'm talking about.
#MyRefi - HARP 3 Cuts Through Red Tape
The White House is promising that HARP 3, already known on Twitter as #MyRefi, will stimulate competition among banks, producing better deals and increasing options for homeowners.
Let's review the reasons homeowners are daring to feel hopeful.
- You can owe more than the value of your house, aka underwater mortgage.
- Banks are to be incentivized to compete for your business.
- Your mortgage will not need to be backed by Fannie Mae or Freddie Mac.
- No property appraisal required.
- Reduced mortgage refinancing fees.
- Historically low mortgage rates.
- No cost to taxpayers.
Arguments Against #MyRefi - HARP 3
I've already read the arguments against #MyRefi.
But truly, this isn't about bailing out mortgages among a select few who supposedly exercised poor judgement.
HARP 3 is about cutting red tape, preventing foreclosure, and paving the way to affordable mortgage payments.
In the end, homeowners with affordable house payments strengthen communities. My community! Your community! And America, along with our economy, benefits as a whole.
But we're not there yet. #MyRefi - HARP 3 needs to advance beyond the proposal stage. So while it's exciting to observe it on the horizon, Congress needs to be told to take action to make it a reality!
Write your elected officials in Congress why you are in favor of #MyRefi and how it can improve the bottom line of your household.
Do it today.
Here's what I'll do. I'll keep you updated on #MyRefi - HARP 3. Watch my blog for more announcements like this one at Kate's Mortgage Blog
Good luck and best wishes,
Ask Kate about Your Mortgage
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or add a comment about HARP 3
Have You Seen the Most Recent Ask Kate Answers
Back to more of Kate's answers atHelp for Underwater Mortgages from #MyRefi
Return toBest Mortgage Rates from HARP 3
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