Obama Increases Refinance Program to 125% Of The Home Value

hi eric,

this is really a big news for the homeowners. most of the borrowers were not able to take advantage of the earlier program with the 105% limit because most of the properties were way under water. now, as the new limit has been increased to 125%, i guess, a large number of borrowers would be able to use this program.

however, i feel that most of the people are not aware of home affordable refinance. the government should first take proper steps to educate the borrowers about it. if the borrowers know about the program, they will be able to contact their respective lenders and check whether or not they are eligible for it. moreover, the lenders should also come forward and help the borrowers by explaining this program.

take care.

Well, it does seem to be a good move towards helping people in mortgage crisis. But the most important thing now is to educate consumers so that they make use of the programs available.

No doubt, with the expansion of the eligibility criteria for Home Affordable Refinance, more and more people can take advantage of it. But they should be able to afford the refinance loan. Affordability still remains a concern due to rising unemployment throughout the nation.

One reason why the Home Affordable Refinance program hasn't done so well is the hike in mortgage rates during mid-May. Since then refinance applications have gone down in general. Even though rates have dropped down a bit in the past 2 weeks, there hasn't been much improvement in the refinance applications. So, we're yet to see this program making an impact on borrowers.

Regards,

Jessica

should we suppose that hike in the mortgage rate in may is a good sign for economy??? whether it is coming again in the original stage where it was before 2 yrs back??

I don't think the increase in rates is any indication that the economy is improving....because it isn't.

Increase in interest rate will drage this housing mraket further down and economy will follow that.

So if the rates needs to be under check for at least a year to clear up all the troubled loans and large inventory

I believe things will be come back strong again. So now is the time to make educated decisions. Proper planning will help many reach their financial goals as Homeowners.

Mel

[Phone number deleted as per forum rules. Thanks.]

I believe on simple story is , what goes up must go down and what goes down need not eventually stop there, rather it will come up some other day.Just be patient and w8 for the bullish ralley.
But again, as far as mortgage is concerned now banks have learnt a big lesson from the past that real estate values can also collaspe, before this nobody could have imagined this but now it is reality.so from this experience people will become more alert and surely will look for safety of their money first.

I have not seen anyone address the issue of MI, nor have I seen anyone address the issue of homeowners whose loans are not owned by FNMA or FHMC


This program reminds me of the other one that pasted in 08 - I believe it was the Hope for Homeowners...ill double check, but it was a massive failure...

I have not seen this product used effectively in my circles

Anyone have any updates in regards to this being available for all homeowners?

Hi Jimmymackin,

As far as I know, the Home Affordable Refinance program is not available to all homeowners. Those borrowers whose loans are owned or guaranteed by Fannie Mae or Freddie Mac, can take advantage of this program. Detached houses, condominium, duplex, triplex and four unit residential properties will qualify for this program.

Thanks

So again in my opinion it is not serving he purpose of refinancing.because all the people who are mostly affected are those who are having lower income and in most of the cases they do have a bad credit (although this can not be generalised) so their home loans are guranteed by fannie and freddie guys due to bad credit.
So in nutshell who is getting benefitted by the refinancing, those who are somewhat affected by the economy. but those who are worse affected by the economy are still noty finding the way out to face this situation.

Although obama government has come up with new plan for these distressed homeowners but still we do not know whether it is a success or not yet?

So it is a best practise to save money on regular basis for one's own home so that one can pay higher downpayment and later on will not have to foreclose the home just because of not able to afford the home.

While it is always a good move to try and find ways to avoid mass foreclosure and a general crash in housing, there has to be a balance with forcing greater financial literacy into the wider population. silver bullet type approaches do little to address the fundamental unerlying problems of people not understanding or failing to consider what they are getting into when they take out a large loan like a mortgage.

Great topic,
When looking at options for refinancing your mortgage, talk to your mortgage professional to find out exactly what you qualify for.
Kal Patel
Voyage Home Loans

Thanks for the wonderful information,
Just remember when you are going to talk with your mortgage professional to do some research on that person just to make sure that they really know what they are doing. There are so many out there that just are not up to date with the ever changing mortgage world.

how often do mortgage rates generally change? What are the main divers of change in the US market - Fed Reserve announcements?