On March 1 the Administration announced a one year extension of its program to help homeowners who owe more than their property is worth refinance.  It applies to owners who owe up to 125% of their home’s market value but at today’s interest rates, it’s worth considering whether you are under water or not.

In fact, the program has been more attractive to owners with good equity than to those who owe more than their property is worth.  This is because the higher your credit score and the lower your loan to value ratio, the less you’ll pay in up front fees.  So the program has a perverse incentive: those who may need it least find it least expensive and easier to qualify.

Current refinancing rates are around 5%; the last time they were this low was in 2003.  More than a third of all borrowers with 30-year conforming fixed rate mortgages have rates at 6% or higher according to Credit Suisse, an investment bank.  And a quarter of all mortgagors are under water.

But it’s the appeal of the Administration’s program to those who have equity — who are not under water — that should make this attractive to many Property Tax Protest clients.

Our goal is to save you money long term by reducing your property taxes.  Refinancing at today’s favorable rates may be just as effective — and complementary to your tax savings.

If you have refinanced in the past year or you do refinance this year your financing appraisal may be useful in support of your property tax protest.  At Property Tax Protest we’ll use it if it’s helpful, ignore it if it’s not.

For more detailed information, follow this link (copy and paste it into your browser):

http://online.wsj.com/article/SB20001424052748704358004575096020101445724.html