Home Mortgage Refinancing the Obama Way
A lot of American homeowners are hoping to benefit from the new government’s solution to alleviate the ailing housing industry. Called the Making Home Affordable plan, this program is aimed at helping homeowners find ways to keep their homes. There are a lot of possible ways for a troubled homeowner to stay in their homes. Some may opt for home mortgage refinancing, while some might qualify for mortgage loan modification.
The new housing plan of the Obama administration is aimed at helping 9 million homeowners whose loans are insured by either Freddie Mac or Fannie Mae. You can be one of the nine million people. Choose between the two ways for you to be able to keep your home and pay for it in the most convenient way for you. Here are pointers you can take note of before your get a home refinance or a home mortgage loan modification.
Home Mortgage Refinancing Qualifications:
- Your home lost a lot of value.
- You currently live in your home.
- You have enough money to pay your new home mortgage.
- You have an outstanding balance of not more than 105 percent of your home’s market value in your first loan.
Home Mortgage Refinancing Benefit: Although the principal amount of your home mortgage loan will not be reduced, you will be able to see big reductions in the interest you paid for throughout the duration of the loan.
Home Mortgage Loan Modification Qualifications:
- You are already behind your home mortgage payments.
- You currently live in your home.
- You have an outstanding balance of not more than $729, 750.
- You use more than 31 percent of your income for your home mortgage payments.
Home Mortgage Loan Modification Benefit: You will have a lower interest rate of up to $5,000.
It is best to contact your lender to get professional advice on this matter. You can also contact the Department of Housing and Urban Development to talk to counselors.
