Homeowners who are facing foreclosure and struggling to find ways to pay their mortgage might benefit from refinancing, which couldÂ be made easier in the coming months.
A bill was recently introduced by U.S. Senators Robert Menendez from New Jersey and Barbara Boxer from CaliforniaÂ that aims to help responsible homeowners refinance their homes at lower interest rates and build thousands of dollars in savings throughout the year.
â€œWe need to bring much-needed relief now to hard working, responsible homeowners who are struggling to keep up with their high interest rate loans - including thousands in New Jersey whom I have heard from,â€ said Menendez. â€œWe need to do this before interest rates go up again. It's time that Congress finally put families first and give homeowners who have played by the rules a fair chance to refinance at today's low rates."
Menendez added that the bill will help put thousands of dollars into New Jersey families'Â pockets, which will not come at a cost to taxpayers. He added that the bill would also stimulate the economy.
The original bill was introduced in the 112th Congress. With the most current interest rate amongst Americans being 3.53 percent on a 30-year mortgage, refinancing could be beneficial for those struggling to pay their mortgage.
â€œThis bill is a win-win-win,â€ Boxer said. â€œHomeowners will have more money in their pockets, Fannie and Freddie will see fewer foreclosures, and the housing market and economy will continue building momentum. That's why the Menendez-Boxer bill has such broad support from industry and consumer groups.
Tips on refinancing
With more Americans looking to refinance their mortgage because of the current conditions in the housing market, Bob Johnson, the head of capital markets with New Penn Financial, recently gave tips on determining whether homeowners should take the necessary steps to start the process of refinancing.
Johnson suggests homeowners ask themselves if they are interested in leveraging their equity to repair or enhance their home, if they'll be retiring in the next 15 years and if they want to pay off their mortgage faster. Homeowners should also consider applying for the Home Affordable Refinance Program, which could help restructure a mortgage, possibly reducing the amount paid monthly.