“Survey: 80% of Homeowners Concerned about Refinancing”
No matter how much I may think refinancing is a good idea for many homeowners, many are reluctant to start the process.
I spoke to Elizabeth this morning. Her parents had suggested she contact me to discuss a refinance to lower her interest rate. She originally closed in January 2009, did an FHA loan, with a rate of 6.5%.
She shared with me, that she was reluctant to begin the process, as she said, it was tedious last time around. All of us hear this all the time, as some loans are not easy to do.
I told her we could do a streamline FHA loan, which required no appraisal, no income verifications and no assets. That we can refinance the existing mortgage only and closing costs need to be paid out of pocket. How much? I estimated $4,400. I loved her comment, where do I sign?
Her savings will be $316 per month, which means, that the costs are paid off in 14 months. That is a great return on invest.
Despite recent gains, homeowners still feel antsy about the housing market, with 4 out of 5 home-owning Americans unlikely to buy or refinance their homes, according to a recent poll.
Union Plus, an arm of the AFL-CIO, conducted the survey with Harris Interactive. The findings? Only employees between ages 18 and 34 felt interested in making a housing investment over the next 12 months.
“With only 18 percent of working families willing to invest in buying new homes, what this poll tells us, first and foremost, is
that we need to help working Americans feel confident about investing in housing,” Union Plus President Leslie Tolf said in a statement.
According to the survey, 53 percent of respondents felt worried that “closing costs for purchasing or refinancing a home are too high.”
With the election season in full swing, the Obama administration will reportedly try to further expand the Home Affordable Refinance Program, which underwent two successive modifications earlier this year.
In tandem with the survey, Union Plus announced a mortgage program to help make the refinancing and purchase processes more affordable for their members.
According to a release, Union Plus provides first-time homebuyers with a $500 Union Plus “Welcome to Your First Home Award” that includes interest-free loans and grants to assist with mortgage payments in instances of unemployment.
“Union Plus offers a mortgage program that gives union families the opportunity to take advantage of the savings they can get by buying or refinancing at extremely low rates, while offering them a unique safety net to protect them against economic hardship,” Tolf added.
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