Feeling pinched by a high mortgage rate

D

EAR HARRY: About 11 years ago, I bought my first house. I'd just gotten a nice promotion, and we figured that a little stretch to buy was worth the effort. Unfortunately, the cost of living a little beyond our means got us in trouble. No pay raises for either of us in the last six years, and a pretty big boost in our real-estate taxes. We talked to our mortgage lender (Freddie Mac) and got the runaround. Same from our bank. The current interest rate on our mortgage is 6.20 percent, pretty high in today's market. We still have a decent credit score and no defaulted loans. Our mortgage balance is $198,000. The house is worth about $220,000. Can you suggest something that won't result in spinning our wheels?

WHAT HARRY SAYS: You might qualify for a government program called HARP ( Home Affordable Refinance Program). Your loan is owned by Freddie Mac, your equity is less than 20 percent, you seem to be current on your payments with no late payments in the last six months, your home is your primary residence and the mortgage was originated before May 31, 2009. You could save as much as 3 percent on that mortgage. That could be enough to get you back where the financial pressures are lightened, if not eliminated. Incidentally, the program also applies to a second home and up to a four-unit investment property. Go for it!