Are There Recent Changes In Mortgages To Help People?
As part of the Mortgage Modification Plan, hard working families have been able to regain the confidence of mortgage lenders and resume making affordable monthly payments. While the extension on the tax credit for the First Time Home Buyers Program discontinued as of April 30, 2010, there have been other recent changes in mortgages to help people.
Home Affordable Refinance Program
First and foremost, the Home Affordable Refinance Program that was slated to run out on June 10, 2010, has been extended until June 30 of 2011. Many homeowners are suffering from having a mortgage that is greater than the current value of their home due to the recent economic downturn. Under this program, a qualifying homeowner can get a new loan that is large enough to completely pay off the old loan, so long as the amount is not more than 105% of the current value for the property. With this option, homeowners can reduce their current payments by taking advantage of today’s lower interest rates. Yet, this is only one of the recent changes in mortgages to help people.
Recent changes to mortgages loan modification program
For areas that have been most affected by the economic downturn, the Loan Modification program has been of tremendous benefit. In these areas, borrowers are able to avoid foreclosure because lenders must decrease monthly payments to no more than 38% of the homeowner’s income, and the government can step in to reduce that figure to 31%.
HAFA
Additional recent changes in mortgages to help people involves the HAFA program that aids deed-in-lieu of foreclosure agreements and short sales. These can relieve the homeowner of the burden, cost, and emotional distress of foreclosure.
*Affects pricing. With the No Closing Cost
Option, borrowers finance the closing costs instead of paying for them at
closing. Borrowers who pay closing costs at closing may qualify for a lower
interest rate. Some upfront fees (ex. credit report and appraisal) may apply
and may be credited at closing.
*Refinancing or taking out a home equity loan or line of credit may increase
the total number of monthly payments and the total amount paid when compared to
your current situation.
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