More Mortgage Refi Modifications for “Underwater” Borrowers
Posted by: Carleton Sheets in unemployment, Refinance, Real Estate, Obama, mortgage, loan to value, Loan, Interest Rate, Freddie Mac, Foreclosure, Fannie Mae, fair market value, Economy, Credit, borrower, Barack Obama on Jul 02, 2009.
A recent article published by CNNMoney.com reports that the Obama administration has revised its initial mortgage refinancing program to help more borrowers---including those whose homes are valued below their loan amount---qualify for refinancing. The revisions also include stipulations that enable eligible borrowers who are either in default or at risk of defaulting on their loan to lower their payments.
Previously, only those borrowers whose loans were up to 105% of their home's current market value were eligible to refinance their homes ... under the government's new initiative, that percentage climbs to 125%. The initiative also waives the requirement that homeowners must have 20% equity in their home before they can take advantage of lower interest rates. However, the program still includes certain requirements: homeowners must be current on their payments, and have loans associated with Fannie Mae or Freddie Mac.
According to the article, the program has already helped about 20,000 borrowers refinance their loans, but projections from the Obama administration have shown that there are approximately four to five million who are eligible. The consensus is that unemployment and rising interest rates are slowing the rush to refinance.
I'm beginning to lose track of all of the loan modification and refinancing programs and the specifics and revisions of each. Have you or do you know of anyone who contacted their lender regarding any of these programs? Was the lender familiar with the program and the eligibility requirements?
I've also been wondering ... if you take advantage of one of these programs, does it impact your credit? I'm looking forward to hearing from you ...
