The Home Affordable Refinance Program is giving homeowners with an underwater mortgage more options when it comes to refinancing their home loan to a more affordable rate. Homeowners that owe more on their home than it’s worth are in a frustrating situation, but there are options available.
Many homeowners have been calling for principal reductions, but this is not a popular option among many lenders. Lenders are unwilling to lower the principal amount owed, in most cases, on a home simply because a home’s value dropped.
However, underwater homeowners do have options available to them when they are struggling to make their mortgage payment due to an underwater mortgage. While some homeowners may be able to get a principal reduction, it’s not something that is widely available, so homeowner may want to seek out refinancing options with the Home Affordable Refinance Program.
Homeowners are being advised to talk with their lenders when it comes to options that are available. While there have been troubles between lenders and homeowners seeking a home loan modification, there are options available to those who are struggling to make their home loan payment.