Government Mortgage Refinance Plan – Making Home Affordable in 2010
Posted on | December 31, 2009 | No Comments
The government mortgage refinance plan was created to help you refinance your current home loan to a lower interest rate. President Obama and his staff have worked very hard to keep mortgage rates low and he has also created the Making Home Affordable plan. The plan is designed to help you save your home and avoid foreclosure. You can do this by refinancing to a lower interest rate or by getting your home loan modified.
You have probably heard of Making Home Affordable on TV or the Internet but you might not know exactly what it means. The Making Home Affordable plan was created in February of 2009 in an attempt to help people avoid foreclosure and stay in their homes. Part of this plan was to keep mortgage interest rates very low. The way in which this is done is that the Federal Reserve Bank buys mortgage-backed securities.
Since the Fed has been buying up mortgage-backed securities mortgage rates have been around 5%. The conventional 30 year fixed mortgage rate is currently at about 5.05% which is still extremely low when looking at historical trends. If you have equity in your home and a decent credit score then you could save by refinancing today.
If you do not have equity in your home and your credit score is not that good you are going to find it very difficult to refinance at low interest rates. If this is your situation you will need to look into the home loan modification program. This program will help you reduce your overall monthly mortgage payment to 31% of your income. This could greatly help you save money in 2010.
Whatever your financial situation, it is extremely important to make sure that you do everything possible to avoid foreclosure. The Making Home Affordable plan was created to help you avoid foreclosure and make sure that you were home stays in your name. Do not let these great opportunities pass you by as they may not last much longer.
Author: Heather Best
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