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Government Mortgage Refinance Plan – Obama’s New Modification Plan Working?

Posted on | October 20, 2009 | 1 Comment

The current government mortgage refinance plan continues to receive changes.  Obama’s modification plan Making Home Affordable was initially intended to help all home owners refinance to a lower mortgage rate or modify their mortgage to a lower monthly mortgage payment.  Recently we learned that there is going to be another government mortgage plan created to keep mortgage rates low and help low to middle income families buy or rent a home.

President Obama has been adamant about getting low to middle income families a low interest rate on their mortgage.  Unfortunately many of the major lenders only lend to the most prime borrowers.  This changed after the Making Home Affordable plan was enacted back in March.  President Obama and his staff created incentives for these lenders which urged them to lend to all borrowers.

If you are considered a bad credit borrower you will find that the interest rate on your home refinance is not going to be drastically lower.  There is an opportunity for you to qualify for a home refinance but that does not necessarily mean that you are going to get the low mortgage interest rates that are advertised.  You have probable seen advertisements for rates under 5% but bad credit borrowers cannot get a rate this low.

Just because you cannot get an extremely low mortgage rate it does not mean that you cannot benefit from a home mortgage refinance.  If you can save one full percentage point on your mortgage you will benefit from the home refinance process.  There are many lenders out there that are more than willing to help bad credit borrowers so do your research and find these companies.

Do not get discouraged if you get turned away by the first mortgage lender.  There are many companies out there so keep your head up and try another company.  There should be a company out there that is willing to help you through this tough time.  You might want to check out the Making Home Affordable website for more information.

Please check out our unemployment forum where we encourage you to post comments below whether it be a strategy you used to get a job, possible tips or links to those who are unemployed or even a rant about your previous employer and how they laid you off.  Anything goes as long as there are no obscenities or direct insults to other posters.

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Author: Alan Lake

Category: Government Mortgage Refinance Plan

Comments

One Response to “Government Mortgage Refinance Plan – Obama’s New Modification Plan Working?”

  1. The government and your home | U.S. Common Sense
    October 21st, 2009 @ 3:43 am

    [...] Plus – “Dodd calls for extension of homebuyer tax credit” Subprime Blogger – “Government Mortgage Refinance Plan – Obama’s new modification plan working?” UPI – “Fitch: Slowdown in Mortgage Modifications Won’t Last” New York Times – [...]

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