Unless there is new funding or new programs developed many people could miss out on the governments Make Home Affordable refinancing plan. There is still time to take advantage of it but it's good to know how long it lasts. Also, a refinance doesn't automatically mean you'll be better off. Find out here what to watch for, along with other little known facts that will help you stay on top of things.
President Obama has already released a stimulus bailout plan of $787 billion and has announced that $75 billion of that money will be used on the housing and mortgage problems. The administration carefully laid out this plan so it would not seem like the government was rewarding irresponsibility or recklessness of homeowners or lenders. Since this is the message they are trying to have come across the plan will first help those who have remained current for 12 months minimum. However there will be options for those who have not been able to remain current on their payments.
Homeowners need to meet some requirements in order to be approved for Obama making home affordable stimulus plan: The home to be refinanced through this plan needs to be the main residence of the homeowners. Second, vacation, or rental properties are not eligible to use Obamas plan. The remaining balance due on the mortgage must be less than $729,500. It could have, at one point, been higher, but as long as the remaining balance is less than that, it will work.
Mortgages which are financed by Fannie Mae or Freddie Mac are automatically eligible to get a home loan modification through Obamas "Making Home Affordable" plan. Homes which have dropped in value as result of the bad housing market and economy are now eligible for refinancing or loan modification.
Under no circumstances will refinancing under the Obama plan reduce the principal balance of the loan. You can, however, save money if you can lower interest rates.
I hope these facts are helpful as you consider the best options for your situation. The best advice anyone can receive is to do their due diligence, and weigh all the facts before making any decisions.
President Obama has already released a stimulus bailout plan of $787 billion and has announced that $75 billion of that money will be used on the housing and mortgage problems. The administration carefully laid out this plan so it would not seem like the government was rewarding irresponsibility or recklessness of homeowners or lenders. Since this is the message they are trying to have come across the plan will first help those who have remained current for 12 months minimum. However there will be options for those who have not been able to remain current on their payments.
Homeowners need to meet some requirements in order to be approved for Obama making home affordable stimulus plan: The home to be refinanced through this plan needs to be the main residence of the homeowners. Second, vacation, or rental properties are not eligible to use Obamas plan. The remaining balance due on the mortgage must be less than $729,500. It could have, at one point, been higher, but as long as the remaining balance is less than that, it will work.
Mortgages which are financed by Fannie Mae or Freddie Mac are automatically eligible to get a home loan modification through Obamas "Making Home Affordable" plan. Homes which have dropped in value as result of the bad housing market and economy are now eligible for refinancing or loan modification.
Under no circumstances will refinancing under the Obama plan reduce the principal balance of the loan. You can, however, save money if you can lower interest rates.
I hope these facts are helpful as you consider the best options for your situation. The best advice anyone can receive is to do their due diligence, and weigh all the facts before making any decisions.
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