Refinance Shortfall?

Posted on February 14, 2010. Filed under: Industry News, Refinance | Tags: , |


In order to help ease the burden of rising unemployment and falling home values the government created multiple temporary refinance programs. The most successful of these has been HARP.   More information about what HARP means can be found here https://michaelpfeffer.wordpress.com/2009/05/26/what-is-a-harp/ .

So how many people have been left out?  According to the Mortgage Bankers Association 72.7% of all mortgages in the US have a rate above 5.5% and rates have dropped below 5% multiple times in the last 12 months.  More detail can be found in this Washington Post article http://tinyurl.com/yzbmabg.

To be fair this data is not a perfect representation of success versus failure.  These statistics obviously do not take into account those that refinanced since this data was collected, likely many months worth of information.  It also does not take into account that many individual borrowers have rates just slightly above 5.5% or have already paid many years into their mortgages and CHOSE not to refinance.  For many of these borrowers the cost of refinancing just simply did not make sense.

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