Homeowners with an underwater mortgage may be looking to refinance their home in order to get a more affordable rate. While there are some exceptions, homeowners may be able to refinance their underwater mortgage through the Home Affordable Refinance Program from the Obama Administration.
When a home is underwater a homeowner owes more on their home than the home is actually worth, which makes for an obviously frustrating situation. However, the Home Affordable Refinance Program is set to continue until June 2011 and it would help homeowners that owe up to 25% more than the value of their home.
Homeowners have been growing so angry at their underwater mortgage situation that many have just walked away from their home altogether. This is causing problems with lenders and the housing market so it is hoped that homeowners can refinance their homes to make them more affordable.
There are also new mortgage principal reduction options available from the home loan modification program that would allow homeowners to continue making mortgage payments but see a reduction in their principal over time. Homeowners struggling in their underwater mortgage are being advised to contact their lenders to find out what assistance can be offered them.