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.