Who Wants an Obama Refi?
With news of borrowers calling mortgage companies and demanding the “Obama Refi” it seems that many are already trying to take advantage of the new HARP changes to help their underwater loans. The Federal Housing Finance Agency estimates that the number of people who are helped by HARP will double through these changes, ranging up to around 800,000 more borrowers.
With hardly any competition currently for refinances in the mortgage industry, this sharp increase in potential borrowers will most likely unleash competition between mortgage lenders. There may even be a strong willingness for borrowers to be reached by multiple companies even if they had been originally planning to refinance through another. However, potential refinancers shouldn’t relish in this. Mortgage rates may not be staying so low for much longer, so they should take advantage quickly while the rates remain unbelievably low!