Home Affordable Refinance Program Can Help Those Whose Home Values Have Dropped
The Home Affordable Refinance program can help those whose home values have dropped
The Home Affordable Refinance program was designed to help home owners lower their monthly payments while at the same time securing lower interest rate mortgages. The program is aimed at helping home owners whose mortgage loans are more than the value of their home. The program had a value set at 105% and under the Obama Administration this number has become 125%. The Home Affordable Refinance plan is helping home owners who are underwater with their home values restructure their mortgage payments and ease their financial stress. A few highlights of the Home Affordable Refinance program are:
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A borrower must be current on his payments in order to qualify for the refinance.
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The refinancing must be completed with a Fannie or Freddie approved lender.
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The new loan would come with mortgage insurance.
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Borrowers cannot take cash out.
If you are living in an area where the value of your home has dropped below what it was when you purchased it this could be the program for you.
Check out the Making Home Affordable web site for more information and to see if you qualify.
