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Ethics of the HARP program...


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I'm a fiscal conservative. We have a mortgage on a home that is losing value by the month. We recently received notification that we quality for a HARP refinance. It would make a big difference in our monthly mortgage payment.

 

If you are a fiscal conservative, do you think it would be going against principle to refinance using this federally funded program, given the growth of the deficit?

 

I really don't want a fight, I just would like some points of view. And please don't let this thread be the first one I've ever started to get deleted!!!! :lol:

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I'd never heard of it and all the articles I found were from this time last year, when it was considered dead in the water.

 

I would not get a loan for 125% of the value, or even the 105% they offer. I understand that the idea is to help you pay less while your home's worth goes down, but wouldn't this extend the length of your loan?

 

IOW, if you've paid for five years on a 30 year mortgage. Will this loan put you back five years? If so, no I would not do it at all.

 

I'm not a big one for changing things that do not need to be changed. We have a small loan that they were trying desparately to refinance for us before the bubble popped. I am SO GLAD we did not fall for it. We would still have eight years to go (we only have six) and it would not have actually helped us out financially, as we had already paid so many years and those years would have been tacked back onto the end. IOW, we would have paid more in the long run in an attempt to pay less right now.

 

That's what bothers me about all refinancing. The ones I've looked into always end up costing the buyer more.

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