In 2012 the federal government tweaked a mortgage relief program to help more homeowners. The goal is to assist people who owe more on their home than it's worth, who are paying high interest rates. The hope is to allow these homeowners to refinance into a lower interest rate, regardless of the value of the home. This could save some homeowners a good chunk of change on their monthly house payments. And the program ends this year.
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Underwater mortgages: they're a real problem in the U.S. With the real estate market still on a delicate recovery path, foreclosure rates are still high in most states and many buyers are still struggling to keep up with their repayments. The Obama Refinance Plan could therefore be a lifeline to millions.
Mortgages seem so complicated on the surface that many people let opportunities to save money slip past them. It makes sense to investigate options instead of assuming that mortgage help isn't available for underwater homeowners. Here are a few "myth-busters" about President Obama's Home Affordable Refinance Program 2 (HARP 2) to help make the process easier to understand.
United States President Barack Obama created a refinance plan to help struggling homeowners. The Obama Refinance Plan was intended to help homeowners keep their homes and save money. However, there are some homeowners who are not using the Obama Refinance Plan to help save their mortgages.
Originally unveiled in 2009 by President Barack Obama, the Home Affordable Refinance Program (HARP) was designed to assist approximately 5 million homeowners who were in foreclosure or close to foreclosure. Due to a low number of borrowers that refinanced through the program, HARP underwent an overhaul with changes that took effect on December 1st, 2011. The revamping of this program is estimated to double the number of homeowners who can refinance their mortgage.
A few months ago, the Obama Administration outlined a plan to help underwater homeowners refinance their mortgages to very low rates. The Obama Refinance Plan (also called HARP 2) will allow borrowers who are current on their mortgage to potentially save thousands of dollars by refinancing into loans secured by the Federal Housing Administration, according to the US Department of Housing and Urban Development.
The US economy is on a delicate recovery path and this includes the real estate market. The home affordable refinance program 2 is therefore a helping hand which many people could use right now. It is an initiative of the federal government that has been put in place to assist homeowners who have no or little equity on their homes. The program helps home owners to refinance mortgage loans at reduced rates which adds up to good savings. The program is temporary and it comes to a close on the last day of 2012.