Will a HARP refinancing lower my mortgage payments?
Most definetly. YES.
In many cases, the interest you can save by refinancing at current rates compared to when you took out your loan will save you thousands if not tens of thousands of dollars or more in interest on a 30 year loan. Home loans are big loans, and the interest adds up. How do you know if you will benefit? The chart below demonstrates that basically any loan in the last ten years would be able to be lowered if financed under the HARP program at current rates.
- Freddie Mac historic rates for 30 year mortgage
Example: Refinancing from a rate of 6.0% to 3.75%, on a $350,000 mortgage, with a current balance of $300,000 lowers a borrowers monthly payment by $700/month.