‘Whether you’re looking to refinance a property you live in or an investment property, find out if you qualify for this amazing program.’
Members of the U.S. military face unique challenges in being asked to move across the country, or around the world, with very little notice.
Ruben, a former but now retired active-duty Air Force officer, and his wife bought their four-bedroom ranch-style home in Sacramento, California, in 2007. Two years later, Ruben was reassigned to the East Coast. It was a slow time for Sacramento’s housing market, and he was unable to sell the home. He eventually found a renter, but between what he owned on the mortgage and what he was able to collect for rent he was losing about $1,000/month.
Ruben endured the financial drain for almost four years before calling his mortgage company to find out about refinancing. The mortgage company said he couldn’t qualify because he was underwater on the loan, meaning he owed more than the rental home was worth.
Fortunately, he didn’t take no for an answer. He called another mortgage company, one that offered the federal government’s Home Affordable Refinance Program (HARP), designed to help underwater borrowers. In about three weeks, his loan was refinanced, dropping his interest rate nearly three percentage points, for a savings of $763 a month.
He was so impressed he used the same mortgage company to refinance the condo where he now lives and will save an additional $160 a month.
His advice? “Whether you’re looking to refinance a property you live in or an investment property, find out if you qualify for this amazing program.”