Government Mortgage Refinance Plan – Obama Continues to Lower Rates
Posted on | October 30, 2009 | No Comments
The government mortgage refinance plan was created by President Obama and his administration in hopes of keeping mortgage rates low to allow all home owners to refinance. If home owners can refinance to a lower mortgage rate then they are going to have to pay less, possibly much less, on their monthly mortgage payment.
The number of foreclosures in America has been on a steady rise for all of 2009 and this is very bad for the economy. Foreclosures not only hurt the home owner going through the foreclosure but it also hurts home owners who live nearby. You may not realize it but if a home near you has gone through foreclosure it is likely that it has pulled the value of your home down greatly.
In many neighborhoods in the housing bubble cities, home owners are seeing the value of their home decrease as much as 50% because of the number of foreclosures nearby. Sadly there is very little that particular home owner can do. Some home owners are locked into homes for this reason and limits their ability to relocate.
With this in mind President Obama created the government mortgage refinance plan to allow all home owners to refinance at lower rates. Hopefully this will slow the number of foreclosures because those distressed home owners will be able to make their monthly payments if they are lower. This is the objective but if it will actually work is still in question.
If you are having trouble making your monthly mortgage payment make sure to check out the Making Home Affordable website. There is a great deal of information that could help you lower your monthly mortgage payment so you can make ends meet financially. If you do not understand the information on the website I would urge you to contact a HUD representative and see what the Making Home Affordable plan can do for you.
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Author: Jeremy North
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