On Monday, a new program was unveiled by President Barack Obama.
The Home Affordable Refinance Program (HARP) helps borrowers up-to-date on their mortgage payments refinance, despite a drop in their home values.
Have you wanted to refinance, but could not because of the drop of value in your home? Now may be your chance to refinance with the new HARP housing aid.
Many borrowers who are underwater on their properties have been unable to refinance their mortgage since they do not have enough equity in their properties. The administration's plan eliminates appraisals and extensive underwriting requirements for most borrowers who are up-to-date on their mortgages and want to refinance at a lower rate.
Lenders should start following the new policies as early as Dec. 1. However, mortgages that are more than the current loan-to-value limit may have to wait until early next year, according to reports.
Housing experts believe that allowing underwater homeowners to refinance at the current low rates will allow homeowners to shave hundreds from their monthly mortgage bills and possibly help avoid foreclosures and free up more household cash to spur the economic recovery in other areas.
HARP is a brand-new program and there is still a lot to learn. If you'd like to receive more info, please contact me and I will forward you the names of lenders who can help.