Refis could boost economy
Study: Homeowners saving $2.3 billion a year
By Inman News, Thursday, September 17, 2009.Borrowers who refinanced their mortgages in the first six months of 2009 reduced their monthly payments by a median of $120, or 10.5 percent -- an annual savings of $2.3 billion, according to a study by First American CoreLogic.
Over five years, that's $11.5 billion in the pockets of homeowners -- money that could boost consumer spending and help drive growth as the economy rebounds, said Mark Fleming, the author of the study, "Consumer Benefits of Government Mortgage Finance Programs in 2009."
The combination of lower payments and fixed-rate terms on the refinanced loans should also reduce the risk of future foreclosure, Fleming said in a statement.
Fleming attributed the savings to the Federal Reserve's purchases of mortgage-backed securities and other "quantitative easing" that helped keep mortgage rates low, and the Obama administration's Home Affordable Refinance Program (HARP), which allows borrowers with loans backed by Fannie Mae and Freddie Mac to refinance loans with loan-to-value ratios of up to 125 percent.
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Submitted by Joe Loomer on September 17, 2009 - 3:08am.
I think the ship's still out on whether the HARP has had any measurable impact. I've seen data that supports HARP's impact, and other information (DR Housing Bubble, for one) that claims it has helped less than 1% of distressed owners.
Either way it does appear refinancing and other measures to keep people in their home can only serve to reduce available inventory.
Looming on the horizon is the expiration of the 1st Time Homebuyer Tax Credit. Without an extention or replacement, the winter selling season looks very dismal indeed.
Augusta GA Homes
Joe Loomer, USN Ret.
Associate Leadership Council, Growth Chair
Keller Williams Realty Augusta Partners
Submitted by Barry Noble on September 17, 2009 - 8:47am.
Let's hope, with the needed boost in refinancing that will help many homeowners who didn't earlier refi their homes into oblivion, for new cars, vacations etc., - that the banks use the experienced, Certified LOCAL Appraisers who know the neighborhoods, properties, special unique value trends and can give a prompt, accurate and up-to-date Appraisal. Please note emphasis on LOCAL.
Barry Noble
http://www.MyPropertyIsWorth.com
Satet Of California
Certified residential Appriaser
And Licensed Broker.