Why wouldn't you refinance into a 6.5% FHA insured mortgage? I can't think of any good reason for not refinancing your mortgage other than fear of change. Do you know who the biggest winners are when you don't refinance your high interest rate mortgage?
Well here are the biggest winners:
1. Mortgage Banks – they get their money back at an 8% or 9% return on each dollar they loan you.
2. Investors on Wall Street – they receive premiums for selling your mortgage as an investment tool at the 8% or 9% return as opposed to the 6.5% rate that FHA can give you.
3. Credit Card Companies – because you are paying a 8% or 9% rate on your mortgage you never have the extra money to make larger payments and are only able to afford the minimum monthly payment and therefore they make thousands of dollars in interest from you yearly.
4. Credit Bureaus – because you have a higher interest rate they sell your information to mortgage companies as a "debt-ridden homeowner" which makes you a prime target for marketing.
You may think I am being a little dramatic with but those reasons are absolutely the truth. However, there's good news for many homeowners if you are willing to take action. FHA loan requirements have now changed for adjustable rate mortgage homeowners. With a low FHA mortgage loan you can have a FHA loan rate in the 6’s or 7’s and you will have FHA refinancing assistance if you hit a tough patch and need a break on a couple of payments.
While you might choose an ARM to take advantage of a lower introductory rate and count on either moving, refinancing again or simply absorbing the higher rate after the introductory rate goes up, in this market that can mean the difference between losing your home and having the lifestyle that you desire. You don’t have to take that risk when you can take advantage of a FHA government home loan that will give you the stability and monthly savings you need.
Chris Rivers, a FHA Mortgage Broker, specializes in offering low FHA interest rates for refinance mortgages nationwide even if you have late payments on your mortgage. When you need to refinance your adjustable rate home mortgage into a fixed FHA rate mortgage with great credit scores then use a Connecticut FHA Mortgage.
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