With the DOW dipping below 7,000 for the first time in 12 years, millions are wondering how they are going to survive in this financial crisis. The fact is, for millions of homeowners who are struggling today or worried about tomorrow, THE KEY TO THOUSANDS IN “FREE” CASH AND SAVINGS MAY LIE IN YOUR OWN HOME’S EQUITY – READ ON! Even though we have seen dramatic declines nationwide in property values, of the millions of homes out there, a good percentage (estimated at 35 to 50%) still live in homes that have equity to access even after the declines and qualify for refinancing. Although guidelines are tighter, borrowers with 620+ FICO’s in homes where the mortgage balance(s) does not exceed 85 – 90% of the homes value, may qualify for a mortgage refinance even in today’s market. FHA programs, for example, still lend up to 95% on cash-out refinances and 96.5% on rate and term refinances.  That means millions qualify today for a refinance in a market where rates are near 40 year lows. The key is to ACT NOW (because rates and programs are changing daily) and BORROW THE RIGHT WAY! So what does that mean? DO NOT just refinance to a lower rate on a 30 year loan like the majority do. The truth is that 30 year rate and term refinancing, even though you are lowering your rate, puts you in worse financial shape in nearly every case! Why? Here’s some facts about 30 year rate and term refinancing:

• The money you save up-front in payments is usually more than wiped out over the long term
• When you do a rate and term refinance your income taxes increase
• You usually lose thousands if you sell in the first five years through decreased principle reduction
• The loan costs by themselves, in many cases, wipe out the monthly savings for the first two to three years
• You  miss out on a much greater savings you could have realized

Although a 30 year rate and term refinance  DOES reduce the monthly mortgage payments, when you add the up-front costs for the loan, the increase in the loan term and overall interest repayment, and the decrease in the mortgage interest deductions and principal balance reduction, the net affect is that it usually DOES NOT save you money. In fact, it leads to a loss of thousands (if not tens or of thousands) of dollars! Therefore, reducing payments to subsequently increase term, taxes and costs is NOT a sound financial decision.  Even if payment reduction is your primary goal, there is a much better, life-changing loan out there if you do it right!  The KEY is leveraging ALL DEBT, not just mortgage debt, and the corresponding debt payments into a single mortgage loan that truly improves every aspect of the loan, your debt and your overall financial situation.  And if your only debt is your mortgage, there are still ways to refinance and improve much more than just your payments!  For millions this can lead to eliminating debt faster, increased tax deductions, increased principal reduction, deferred monthly payments for 30 to 60 days and even cash without raising payments a dime or extending term a day! By leveraging your debt and equity to lower your payments, shorten your term, reduce your taxes, save thousands in payments, offset your closing costs and get cash all at the same time, the money you save and the cash you get is basically free!  So the key to unlocking your own stimulus plan and taking control of your mortgage, your finances, your debt and your life again, may be as close as your own debt and home. If you want to learn more in detail immediately, you can do so in my new book, Navigating the Mortgage Maze: The Simple Truth About Financing Your Home (Northfield Publishing).  It’s loaded with tips and strategies for helping you get a mortgage loan that can improve your finances dramatically today!  Check it out at www.mortgagempowered.com or www.navigatethemortgagemaze.com.