Negotiating for a new Mortgage Contract
Mortgage Refinancing: Government Programs


Growing numbers of foreclosures and the current economic difficulties we see today has forced the hand of government to introduce programs and policies aimed at curbing these problems. The Making Homes Affordable Program was introduced by the Obama administration as a way of helping the millions of Americans in danger of losing their homes. The government has made billions of dollars available for these programs and help the US economy recover from the housing crisis. It has helped many Americans refinance their mortgage and is one of the major factors pushing mortgage rates down.

Refinancing your Mortgage

Eligibility

A huge majority of mortgage contracts are currently owned by Fannie Mae or Freddie Mac. The Making Homes Affordable Program is presently available for contracts covered by these institutions. Checking with your bank would help you determine if your contract falls under which mortgage bank.

Only private homeowners could qualify for the government program. Homeowners wishing to take advantage of the program are required to submit to credit checks and prove they could make the new mortgage payments. Like their old mortgage contract, credit scores play an important role in determining whether they qualify for mortgage refinancing.

Second Mortgage

Homeowners who currently have a second mortgage could only apply the new contract on their primary mortgage. This also requires homeowners to secure a prior agreement with lenders of a second mortgage that if they file for bankruptcy or foreclosure, the primary mortgage takes priority.

Interest Rates

Todays interest rates are the lowest in years and homeowners that are eligible for the program had the advantage of locking these rates on their new contracts. Current interest rates for 30 YR FRMs stand at 5 percent a huge drop over the 6 percent numbers we saw a few years ago. A 1 percent difference could mean a decrease of $200 for an average home mortgage or savings of $20,000 over a 30 year period.

Mortgage Insurance

Getting mortgage insurance is required for homeowners wishing to avail of the program. However, homeowners who currently have mortgage insurance could apply this to their new contract.By: Smith FrankArticle Directory: http://www.articledashboard.comTo learn more about the numerous opportunities of owning a home in the Florida Real Estate market visit the weblink at Sarasota Real Estate