There are a few underwater refinancing options with the Obama Making Home Affordable government mortgage plan that could help many Americans save money starting today. One of the biggest problems that Americans have had when it comes to refinancing is the fact that they must have a significant amount of equity in their homes.
Without equity, it can be nearly impossible to take advantage of the current low interest rate environment. Even though 30 year fixed mortgage interest rates are being quoted as low as 4.25% it does not benefit those who do not qualify because they currently have an underwater mortgage. This problem has been address by President Obama and his administration as they have worked hard to expand the Making Home Affordable Plan. In the coming weeks millions will start their search for Pennsylvania State Income Tax Forms 2011. All of these tax forms are available for free online so there is no reason to pay for them.
The Making Home Affordable states the following
Homeowner Eligibility
- Homeowners must be current on their existing mortgage payment
- Homeowner must occupy the home as their primary residence and fully document their income
- Homeowners must qualify under standard FHA underwriting guidelines
- Homeowners must have a FICO credit score of at least 500
- Existing lenders/investors holding the first lien must agree to the principal write-down requirement. Thus, not all homeowners who meet above criteria will receive an FHA refinanced loan.
- As with any loan forgiveness, the short refinancing should be reflected on borrowers’ credit score
Notice that a specific credit score is needed to have any chance to take advantage of underwater refinancing. Unfortunately, there are many homeowners who meet many requirements but it is the case that their credit score has greatly dropped over the last few years and it is very difficult to lock in to that low mortgage interest rate which would allow for lower monthly mortgage payments. There is one free annual credit report offered by the government at the website annualcreditreport.com. Please remember that this free credit report does not include a free credit score.
When considering underwater refinancing options it is always important to remember that there are ways to receive help. With 30 year fixed mortgage rates very close to all time lows now is one of the best times in the history of the housing market to refinance a home loan. Before going through this process it would be smart to read up on the Government Mortgage Refinance plan which is also know as Making Home Affordable. By completing due diligence homeowners may find that they can reduce a monthly mortgage payment by as much as several hundred dollars. Remember that each financial situation is a little bit different and different results will occur.
Related posts:
- JP Morgan Chase Home Loan Modification – Obama Making Home Affordable Lower Mortgage Payment Plan Help
- Unemployed Home Loan Modification – Obama and Making Home Affordable Help Lower Mortgage Payments Today
- Obama Principal Reduction with Making Home Affordable Home Loan Modification Plan – Lower Mortgage Payments
- Wells Fargo Home Loan Modification for the Unemployed – Obama Making Home Affordable Plan Helps Homeowners
- NACA Home Loan Modification Program or Plan to Avoid Foreclosure – Alternative to Making Home Affordable
One Response
Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.
Continuing the Discussion