Mortgage rates have been near all time lows for most of the year. This is great news for homeowners looking to refinance or modify their mortgages. However, many people have yet to take advantage of the low mortgage rates that are now available. Here is why refinancing your mortgage now could be a great financial move, reduce your mortgage payments, or save your home from foreclosure.

With mortgage rates as low as they currently are, many homeowners would reduce the amount of interest they pay in almost half. This would be a substantial savings on monthly home loan payment amounts, and save many people a lot of money, or their home from being lost. Also, many homeowners find themselves with an ARM loan and a home that has dropped in value since purchasing it. These homeowners thought their home would rise in value, and they would be able to either sell or refinance before the mortgage rates on the adjusted rate mortgage increased. Another problem is that many homeowners were approved for loans which they could barely afford, and now that the economy is in bad shape, the homeowners are struggling. This has led to an all time high number of foreclosures and mortgage defaults.

With so many people at risk of losing their homes, and the lenders and banks at risk of losing a lot of money, something needed to be done. In an attempt to get homeowners to avoid foreclosure, lenders and banks have lowered interest rates, and made refinancing or mortgage modification easier than ever. The lender or bank would rater take a smaller, but sure thing profit than deal with another foreclosed home in a bad housing market. This means that homeowners in all types of bad situations now stand a much better chance at getting approved for help with their home loan.

Also, in addition to the lenders and banks easing their qualifications for who will get approved for mortgage refinance or modification, there are new Government stimulus programs which will help millions of people. These programs are designed to help homeowners who have missed payments on their home loan, are in foreclosure, or will be in foreclosure soon. This stimulus program will allow homeowners with upside down loans, bad credit, or financial hardships to get help lowering their mortgage payment, and saving their home from being lost. If a lender or bank uses this stimulus program to help a homeowner, they will receive a cash incentive for doing so. This money makes it more likely that a homeowner will get approved, and the lender or bank can cover potential losses. Many homeowners are able to use this stimulus for themselves. Contact your mortgage lender or bank and ask about what this program can do for you.

Right now is a great time to refinance a mortgage. Between the low interest rates, Government programs, and incentives to help homeowners, refinancing a mortgage is a great decision for millions of homeowners. It may also be the only option a person has if they want to save their home from being lost.

-M Petrone

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