Tuesday, July 23, 2013

New Home Affordable Refinance Program Will Help Underwater Homeowners With Home Mortgage Refinance

The Home Affordable Refinance Program is one of the popular mortgage relief programs introduced by the Obama administration in the U.S. to help tens of thousands of financially struggling homeowners manage their mortgage payments wisely and thus prevent risk of defaulting on their mortgage payments and facing foreclosure. The program was originally introduced in 2009 however some changes were made in Home Affordable Refinance Program guidelines with HARP 2.0 to expand its reach to a larger population of homeowners who were still underwater and struggled to make mortgage payments. If you could not get benefited with original HARP, you may be considered for the new Home Affordable Refinance Program.


If you are not behind on your mortgage payments, but cannot get traditional refinancing due to fallen value of your home, you can simply apply for HARP 2.0. Nevertheless, prior to applying, one should be a thorough understanding of what its approval criteria are and how the program works. You might be eligible for the new Home Affordable Refinance Program if,
1.   The mortgage is owned or guaranteed by Freddie Mac or Fannie Mae.

2.   The mortgage has been sold to Fannie Mae or Freddie Mac on or before 31 May, 2009.

3.   Current LTV (loan-to-value) ratio is above 80%.

4.   You are current on your mortgage while refinancing. You should have a good payment history on your mortgage in the past 12 months.  

 

Apart from this, the modified Home Affordable Refinance Program guidelines may allow homeowner to refinance his mortgage regardless of how far his home has fallen in value. Moreover, some risk-based fees for homeowners who refinance into shorter-term loans could be eliminated or modified. Even few homeowners may not require getting an appraisal to refinance his mortgage making the process quite faster and easier. Thus, isn’t it easy to qualify for new Home Affordable Refinance Program? Nevertheless, it must be made known that securing professional help of a competent and reliable mortgage specialist is necessary. This is because, there are many mortgage relief programs under Making Home Affordable Plan, introduced by the Obama administration, which you should explore before making your mind for one. A specialist will assist you in choosing the right program. Also, he will enhance your knowledge on how to get approved for the federal mortgage refinance or relief program fast and easy so that you can manage to pay back your mortgage and bring your finances back on the right track

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