Life is Odd, and the workings of politicians and government Odder.
Back almost 10 years ago, I took out a mortgage loan on my house. I took what
was considered a big gamble, five year
fixed interest only, converting to variable principal and interest after that.
Sure enough, interest rates and payments
went up for a couple of years, BUT - then plummeted.
I was sitting pretty on a rate just below 3%, but wouldn't rates inevitably go
up in the next 20 years? I've been
thinking about a re-fi to lock in a low rate, but it sounded like a lot of work
- and there would be a lot of costs,
whether paid up front or financed.
Back in 2009, the HARP loan program was started to assist homeowners whose
loans were underwater refinance up to 105% of
value. They didn't get near as many loans done as anticipated, so they loosened
some requirements, first to 125% of
value, then no cap. Then early this year, they made things easier yet.
Obviously, the big banks, sitting on a lot of
non-delinquent, but very low interest rate variables, saw a way to improve
their financials.
So Chase, who had ended up with my loan in the troubles, sent me an offer I
couldn't refuse. I've just refinanced my old
loan as a new 30 year term, 4% fixed interest rate, they paid all costs - I
paid nothing - at all, and 10+% lower
payments. :-)
I don't know it it's 'right' that I benefit from a program intended to help
people in trouble, but hey, I'm a retired
senior on a limited income, even if my house is worth much more than the loan
amount.
Anyway, anyone here with a Fannie or Freddie backed loan, especially a
variable, might look into the HARP program.
Meantime, I have no payments for two months. Yes, of course, the interest rolls
into the new loan principal. But who
cares? That means I can finance my new Oly kit over 30 years @ 4%. :-D
Financially Fortunate Moose
On 7/18/2012 3:26 PM, Ken Norton wrote:
> ...
>
> All said and done, throughout the entire process, I signed my name no
> less than 120 times. The regulatory changes since the housing collapse
> has turned this into an absolute nightmare.
The change from my first house purchase in 1969 is phenomenal. That closing was
just a few sheets of paper. Since this
was just in internal re-fi within Chase, it only generated 1/2 inch of paper at
closing. I didn't even get writer's
cramp. :-)
Whatever one may think of the big banks, Chase's loan department impressed me.
I dealt with two really knowledgeable,
patient, helpful people on the phone, one to set up, one to process, they both
responded very quickly to inquiries and
never seemed rushed. They processed it rapidly, and then sent a traveling
notary, so the closing was on my dining room
table. Amazing, really.
--
What if the Hokey Pokey *IS* what it's all about?
--
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