House refinancing costs do not make it attractive to go for lower rates and people, unsure of the future don't find the historical lower rates attractive. If the government forces the banks to refinance for free people would save billions of dollars and the money would be available to reignite the economy.
Our tax money is going to the bankers to save the institutions in the hope that they will increase lending and make money available for the economy. However, this is not happening.
Our tax money is going to the car makers in the hope of saving the U.S. car industry. We hope that they will make better cars. However, what we see is the execs coming to Washington in private jets. These people just don't get it. Although, to be fair, it looks like some changes are coming to the auto industry.
Wouldn't it be more plausible if the government stimulated the people, who are the real driving force behind the economy.
The Congress, Senate and the President should consider stimulating the people and finding ways to encourage homeowners to take advantage of the lower rates to refinance mortgages and free cash on spending. This is a huge amount money that will be available for the economy.
Our current mortgage payment is about $3000 dollars a month. The rate is 6.5 percent. Currently the rates are as low as 4.5 percent at Amerisave.com. If we took advantage of this low mortgage rate we could reduce our monthly payments by close to $1000 dollars a month and make our payment in the range of $1900 to $2000 dollars a month.
However, we are hesitant taking this action because of unbelievable high mortgage refinancing costs. We would be in an advantage if we knew we were going to stay in the house for more than 3 years. However, this difficult economic time does not inspire economic faith in people's minds, but the opposite. Fear, confusion and being unsure of tomorrow's economy is driving people's decision because no know seems to know when is the bottom and how deep we are in this recession.
"Refinancing your home can often help ease the burdens of interest you currently pay but you must also be aware and recognize all of the refinancing costs that could put you out in the short-term. When working to refinance your home, it should be thought of as starting from square one meaning refinancing costs will be similar to those when first buying the home. All appraisals, inspections, and loan applications will still be required meaning you must pick up these as part of your refinance costs," writes Refinancing Right. We calculated that there would be other $14,000 to $16,000 mortgage refinancing costs if we took this avenue.
3.6 million people being out of jobs and unsure of tomorrow's economy are most likely not going to risk another $14,000 to $16,000 with the hope that they will recuperate in few years.
Therefore, we argue that if the U.S. government gave incentives to the people to refinance and used considerable part of the stimulus package virtually allowing people to refinance for FREE, this would have a huge impact. People like us would save about 30 percent on our mortgage payment. That money would go buying consumer goods and reigniting the economy.
Otherwise the current situation seems to be unfair. The greed of the banks and financial institutions and the lack of the morals in the business industry got the entire world into this economy recession, yet the stimulus is going back to them to make them stronger and standing. However, they are not willing to easily lend money to people and businesses.
We all just have to find ways to allow make it very attractive for the people to refinance their mortgages. It will free money for the economy.
Editorial
Armen Hareyan
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#1 refinance
our gov. has given trillions of dollars that we the common people will pay off in severla families lifetimes and they can not find a way to make things more affordable for those of us who will pay the tab...I hav enew for those who find themselves as legislators and senators and in the house...beware the common people will find a voice and they will oust you from office as you turned your back to them in deferance to your cronies who have been there for years...beware...beware the common people will not put up for som eone wlse spendin gtheirt money and telling them to understand....make not bones about it these atrocities will cease as the common man can rise up....do not misjudge those of us who work to pay your salaries...we will not bust our backs for your benefiut...life is changing DO YOU HEAR IT!...anonm;;;ous...one///sky///find a way to make a difference and turn the tide even if it costs your as we have!