There have been homeowners across the nation who have seen the value of their home decrease over the past months or years and, as a result, their home is now underwater. Obviously, homeowners who owe more on their mortgage than their home is worth are in a very frustrating situation but there have been refinancing opportunities available for individuals in this predicament.
Initiatives from the Making Home Affordable Program and upcoming FHA opportunities have been made available to homeowners who have an underwater mortgage and need a more affordable monthly payments so that they do not face foreclosure. The Home Affordable Refinance Program is one plan that has helped some homeowners who have an underwater mortgage by allowing them to refinance their home loan to a more affordable rate.
Low interest rates at the present time have aided many homeowners who have either sought to get a more affordable monthly payment for their home loan or who simply wish to shorten their mortgage term, lock in a low interest rate, and erase their home loan debt faster. Yet, there are many cases where these traditional refinancing opportunities are available to homeowners with an underwater mortgage.
However, there have been underwater homeowners who have refinanced their mortgage and put more money towards their home, which has allowed them to get a more affordable home loan payment and can assist them in getting out of mortgage debt in a timelier manner and at less cost overall. Cash-in refinancing has been used by both underwater homeowners and those who have equity in their home to lower their principal amount and help them get out of mortgage debt faster.
While many underwater homeowners are simply looking for a way to make their monthly mortgage payment more affordable, options like cash-in refinancing may not only bring refinancing opportunities for underwater homeowners but it can assist a homeowner by allowing them to get out of debt on their home loan years ahead of schedule and at a lower cost overall.