Since the beginning of 2009, the Obama administration has been reducing interest rates on Home Mortgage Refinance, but these programs are now being phased out. Loans backed by the government currently carry interest rates between 5.25 and 6.0, but are projected to go up significantly. However, to compensate for this, President Obama and his economic advisors recently announced the ‘Making Home Affordable’ plan, specifically designed for distressed homeowners. The 2008-09 finance bills passed by Congress are further backed by this plan. Home Refinance Programs backed by the government are often the last and only option available to homeowners fighting to protect their property from foreclosure, or those with a credit score of 700 or below and having less than 25% home equity left.
Homes with Equity
Homeowners availing of the FHA loan assistance can get a loan at a fixed interest rate. The amount of this loan can vary but most homeowners can get about 97% of the currently appraised cost of the property. However, those homeowners who participate in the ‘Making Home Affordable’ plan can now avail of government home refinance up to 105% of the current appraised cost of their home. This government Mortgage Refinance Program has the potential to save homeowners thousands of dollars in mortgage payments. Another advantage of participating in this program is the low Home Refinance Rates of interest, which remain stable throughout the entire term of the mortgage. Another point to be kept in mind is that home prices in the US have been falling and are projected to do so for quite a while. If your home still has some equity left and carries an adjustable mortgage interest rate, you should opt for the thirty-year fixed rate loan guaranteed by the government immediately instead of waiting until your equity drops.
If you are a distressed homeowner and fulfill the FHA requirements, contact us today to get a government-backed Refinance Home Mortgage.