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Debt Relief – Insolvency – Bankruptcy Information » Mortgage Refinancing » Affordable Refinancing

Affordable Refinancing

Article by Cesar Bryant

The Home Affordable Refinance Program allows homeowners to switch an adjustable rate mortgage with a limited rate mortgage. In other words there has to be a legitimate reason why the home-owner needs refinance assistance.

Homeowner Qualifications
Current Mortgage Payment History – The homeowner must remain current on all mortgage payments as a way to qualify for this government mortgage services program.

Primary Residence – The homeowner must make use of property as their home. This program is simply not for folks with vacation home property finance loan problems. If you have a distressed vacation home property and mortgage than perhaps a quick sale, a deed in lieu, maybe home sale is the best course.

Refinancing Makes Financial Sense – The homeowner needs in order to afford the new payment terms that will likely accompany the new mortgage if refinance support is ultimately granted.

Home Loan Qualifications
Backed By Freddie Mac or Fannie Mae – The existing mortgage loan is required to be owned or backed by either Freddie and Fannie. If the mortgage is not than it doesn’t be eligible for assistance through all the Obama refinance program.

125% Debt to Equity Percentage – The chief mortgage must have a balance who equals 1.25 times the house value or less. If the debt exceeds this amount as opposed to loan is not eligible.

Refinancing Improves Affordability of Loan – Refinancing the mortgage must reduce overall affordability of the mortgage.

Remember that both the homeowner and the existing applicable mortgage loan must meet the above qualification for you to apply for HARP.

The Obama home affordable refinancing assistance program has ultimately been an achievement. The program continues to help home owners avoid mortgage default and make your home affordable.

For most of the past year, mortgage rates are generally at or near record low items. Unfortunately, many homeowners have been unable to take benefit from these rates due to declining dwelling equity. Many homes have lost quite a lot of value since the housing market peaked around 2006. As a result, many homeowners now owe more on their mortgage than their home is worth (this condition referred to as being “underwater” or “upside-down” on one’s mortgage). Homeowners who lack equity in their homes are usually unable to meet the loan-to-value (LTV) ratios required by lenders as a way to refinance their mortgages. These borrowers may be passing up on thousands of dollars worth of discounts.

In response to this situation, government entities created the Home Affordable Refinance Application (HARP). HARP was designed to let homeowners with little to no property equity to refinance into lower mortgage rates. HARP loans are available to borrowers with LTVs of approximately 125 percent, although the maximum LTV the idea varies by lender.

  • Some of all the eligibility requirements for HARP are:
  • The borrower’s mortgage needs to be owned by Fannie Mae or Freddie Mac
  • The home must be typically the borrower’s primary residence
  • The borrower must be current on their mortgage with no late payments within the last 12 month period
  • The new loan must lower the borrower’s monthly payments
  • For a whole listing of the HARP eligibility requirements, check out the Making Home Inexpensive Webpage here

 

Your Obama home refinance plans explained. This is a cool site that gives a great number of info about government backed refinance ideas. They are meant to help struggling homeowners using monthly mortgage payments.

obama home refinance plan

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