President Obama’s Home Affordable Program is intended for helping millions of Americans protect their homes through help to either mortgage refinancing or loan modifying their present mortgages into reasonable payments. Which one is right for you? The Home Affordable Program has number of components, and based on your condition, you can be eligible for assistance using one of the federally subsidized alternatives.
The Home loan Modification program is intended for borrowers facing a financial hardship and not able to get benefit of the existing low rate of interest because of loss of equity or low credit ratings. Under this program, contributing lenders would be paid to modify loans for competent homeowners. The terms provided include interest rates lowered to 2%, loan terms extended to 40 years and principal delay. If you have lost important equity because of reduced home prices and aren’t able to refinance or sell your home, you could be qualified under this part of the program.
The Home mortgage Refinance loan is intended to provide a new loan at existing market rates for homeowners who are present on their mortgages, however who don’t gets eligible for a standard refinance because of loss of equity. In case your mortgage balance is 105% of the present value or less and you haven’t been more than 60 days delayed in the last 12 months, and your present loan is owned or provided by Fannie or Freddie you can be eligible under this program.
