In the past, bad credit mortgage refinancing was hard for homeowners to get approved for. Now though, with the economy and housing markets in bad shape, foreclosures at an all time high, and new Government programs designed to help struggling homeowners, refinancing is easier than ever. Even though the market is down, refinancings are up, and here is why:
Refinancing is when a mortgage holder takes out another mortgage and uses the funds to pay off an outstanding mortgage. If mortgage holders refinance they borrow an entirely new mortgage and have to follow the same requirements they followed when they were granted their initial loan. The necessary requirements can include attorneys’ fees and insurance. Refinance agreements normally happens if the borrower’s economic situation changes. The types of changes to a homeowners economic prospects that could call for refinancing include updated loan rates and increased annual salary. Mortgage holders may also undergo refinancing in order to renegotiate payment terms. The government is at this time supporting mortgage refinance initiatives through the HARP program.
Homeowners who are willing to sign an affidavit of “Financial Hardship” will now be eligible to refinance their home into a fixed rate 2% home mortgage. This “Financial Hardship” can be hospital bills, tuition, credit card debts, loss of job, loss of income, or an increasing interest rate which is driving up your mortgage payments. Homeowners who have a mortgage backed by either Fannie Mae or Freddie Mac are eligible for a mortgage modification using the Obama stimulus plan. This plan will let these homeowners refinance into a 2% fixed rate loan and save a lot of money. Homeowners with a mortgage backed by either of these 2 lenders are automatically eligible.
With so many problems facing homeowners, refinancing provides a good and easy way to lower monthly mortgage payments, and save a home from being lost. Government mortgage refinance programs are easy, and now available for millions of people. Using this plan is not difficult and if you are facing mortgage or financial problems, odds are you will get help from this stimulus program. Bad credit refinance, upside down mortgages, financial problems, it does not matter. Help is available.
The housing market will hopefully start to recover as consumer confidence increases. This mortgage stimulus plan will help millions of homeowners save hundreds of dollars every single month, and maybe more importantly their home. As stated by the Obama administration, an estimated 9 million homeowners are eligible to take advantage of this government mortgage refinance programse right now. Consider taking President Obama up on his offer and refinance your home loan today.
Learn more about Obama Mortgage Relief Plan Qualifications.