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Reducing Mortgage Payments

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6.5 million Homeowners with mortgages could save approximately $200-$500 on their monthly payments by refinancing, most could qualify and benefit from traditional refinancing while 450,000 are HARP-eligible. HARP, the Home Affordable Refinance Program, is a federal program established by the Federal Housing Finance Agency to assist underwater homeowners or those behind on their mortgage payments to refinance if unable to qualify for traditional refinancing.

Because refinancing is rate sensitive, an interest rate increase of just one-half a percentage point could eliminate one-third of those borrowers wishing to refinance. Additionally, a one-percentage jump could affect home affordability by increasing home prices by 13%. Presently, monthly mortgage payments on a median priced home is similar to that of what borrowers paid during the 2000-2003 period; down $400 from 2006 levels.

Source: “Black Knight’s May Mortgage Monitor: 6.5 Million Borrowers Could Save $1.66 Billion Monthly Via Refinancing” Black Knight Financial Services (July 6, 2015). “Making Home Affordable” Making Home Affordable.

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“Novelette was very knowledgeable about the property and the area.  I felt that she was straight-forward about the negative or down-side of aspects of her work. After closing, Novelette asked for feedback on her services and seemed sincere in wanting to improve the negative. She also recommended service people for electrical, plumbing and carpentry, as I mentioned the changes and improvements that I anticipated to make the house "mine’.”

Judith L.

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