More homeowners may be helped through the Home Affordable Refinance Program in the coming weeks as recent changes that have been reported on may allow more underwater homeowners to qualify for this particular type of aid, in the hopes of taking advantage of low mortgage rates currently available that may help these underwater borrowers find more affordability on their monthly payments. However, when it comes to homeowners who are in a position where refinancing may be helpful for their situation, there are some officials and homeowners who want more to come from refinancing opportunities be they from HARP or other programs.
Obviously, homeowners are well aware of these underwater refinancing options, in most cases, but more are looking for principal reduction opportunities to be made available so that these homeowners can avoid paying a substantial amount more on their home than it’s worth. Yet, this issue is one that has been covered over the past few weeks and, when it comes to current changes that are still being proposed, there are some indications that officials want the Home Affordable Refinance Program to offer more help to homeowners as many are still struggling at the present time.
It’s no secret that home values have been decreasing over the past weeks and months, with some homes seeing decreases from years prior as there are those who are in a position where their home’s value has been substantially lower than their purchase price for years. Last year, and even earlier in some cases, we saw homeowners grow frustrated and begin strategically defaulting went negative equity was a problem, but when more affordable payments are offered there are officials who feel this can be beneficial when it comes to keeping homeowners in their property rather than walking away or attempting to short sell their home.
While there have been some who want assistance for refinancing to be extended to homeowners who are not simply in a negative equity situation, but may have a specific type of mortgage like those offered from Fannie Mae or Freddie Mac, it’s hoped that programs offering refinancing assistance or relief from certain fees and costs that come with refinancing, may be made available to a wider range of homeowners both in a good financial position in terms of their equity or in a negative equity situation as rates on home loans that are currently at substantial lows may greatly go towards helping homeowners avoid the loss of their home.
Understandably, changes that are forthcoming and have already been put in place as part of the Home Affordable Refinance Program may help homeowners who are facing problems when it comes to refinancing and even affordability issues on an underwater mortgage, but again, officials still want changes to be made in terms of refinancing for homeowners in general so that more may be able to get an affordable rate, potentially qualify for more affordability on their home, and hopefully avoid financial problems that may lead to delinquency or default.