Obama’s Housing Plan Encourages Refinancing

According to the President, the housing plan his administration has launched has contributed to a spike in the number of homeowners who are refinancing their mortgages.  However critics question his statement that mortgage refinancing can be equivalent to  tax cuts.  

Tax analysts told FOXNews.com that lower mortgage rates actually reduces tax savings.

“While there could be overall savings by refinancing and lower monthly payments, there also could be reduced tax benefits as less interest is paid,” said Gil Charney, an analyst for The Tax Institute at H&R Block.

For those with significant equity in their home, refinancing may be a way they can ease the budget restrictions caused by the recession.  Mortgages are one way in which you can get immediate funds that are repaid over a long period of time.  There are many alternatives to consider but by comparing refinance mortgage rates together with all the attendant terms and conditions, a better mortgage package may be obtained. 

The US Government website, makinghomeaffordable.gov,  provides full information on what is possible through refinancing in making your home affordable.  In particular, there is an evaluation form to determine whether the homeowner may be eligible for refinancing.  If the owner is current on their mortgage payments but unable to refinance to a lower interest rate because their home value has decreased, nevertheless they may be able to refinance.  It is certainly something to check out.