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The Wall Street Journal had a story this weekend on the risk of trusting a mortgage calculator to determine whether or not it’s time to refinance.
Many have tried to refinance in the last year because of such low interest rates, but sometimes refinancing too often can prove costly and homeowners need to carefully consider all of their options. Sometimes the best option is to do nothing.
The Obama administration’s Home Affordable Modification Program (HAMP) was meant to help homeowners who were trying to do the right thing.
Now many of those homeowners, who have loans with big banks (Bank of America, Wells Fargo and JPMorgan Chase) are at risk of losing their homes, which is the reason for several lawsuits against the banks, as USA Today chronicled in this story over the weekend.
The Wall Street Journal ran this story on Sunday about how many homeowners are refinancing in an effort to get a shorter term – often switching from a 30-year to a 15-year – so they can get out of debt faster.
This reminded me of a conversation I had several months ago with mortgage expert Dale Vermillion for this story on taking a common sense and long-term approach to choosing a mortgage.
If you’re trying to refinance because of record low interest rates, but you can’t get qualified for some reason – it's become more difficult to qualify since the housing bust – but more government assistance could be on the way.