Aspects of the federal underwater mortgage refinancing plan that were supposed to change and help more homeowners have finally arrived and it’s hoped that these changes in the federal Home Affordable Refinance Program will allow more individuals to find affordability on their mortgage as a result of refinancing to today’s low interest rates that can be made available on a variety of homes, and potentially bring more savings to homeowners who are in a negative equity situation. Obviously, homeowners have been looking for underwater refinancing opportunities for years since devaluation began and homeowners started seeing negative equity issues arise, but it’s hoped that as a result of problems that were hindering some homeowners from successfully taking advantage of underwater refinancing opportunities, these changes may offer more homeowners aid when it comes to their negative equity problem.
However, there are some who feel that this program may not necessarily be a lifeline for all underwater homeowners but changes that were announced by the Federal Housing Finance Agency include certain aspects of the program that had been adjusted to hopefully bring more homeowners into the fold in terms of allowing them to refinance. Obviously, there has been the elimination of certain fees for borrowers in a position where they refinance for a shorter term home loan, while there was also the removal of the current 125% loan-to-value restriction that many feel was a major hindrance to homeowners due to the severity of property devaluations that were seen in many cases and, obviously, disqualifying homeowners from this particular program.
Again, it’s hoped that new changes to this program will bring more affordable options to those in negative equity situation and since there has also been an extension of the Home Affordable Refinance Program, which takes this opportunity to refinance into December of 2013, if changes in the program are met with success homeowners will continue to have this option for quite some time to come. Yet, this refinancing option is being closely reviewed as homeowners some may get lower rates but refinancing to shorter mortgage terms or certain costs have posed a concern by some officials as this could offset any benefits that are seen when underwater homeowners are able to get a more affordable rate on their home loan.
Obviously, there are those who are looking for these refinancing options simply as a way to find more affordable overall costs on their mortgage but for some homeowners still struggling to make ends meet this underwater refinance option could potentially lower their rate to a level where more affordable monthly payments come into the picture and, as a result, certain homeowners have been looking for this specific benefits as a way to help them avoid foreclosure and financial problems that potentially lead to the inability to meet their mortgage payment and possibly face foreclosure as a result.