| In fact the home values have depreciated so | | | | but they cannot refinance conventionally because |
| significantly that the latest Obama mortgage plan | | | | refinancing 80% of the home's current value does |
| enables borrowers to refinance their mortgage up to | | | | not allow them to even pay off the existing |
| 125% of the property's present value.The 125 loan | | | | mortgage. |
| plan aims to refinance borrowers into lower mortgage | | | | The Home loan modification may finally be the |
| payments. | | | | solution that many Americans have been looking for. |
| Home Affordable Refinance Loan Qualifications: The | | | | Past government refinance plans like Hope for |
| Home Affordable Refinance Program allows a | | | | Homeowners and Federal Home Affordable Secure |
| homeowner to refinance their current mortgage as | | | | were unable to help the average borrower refinance |
| long as the home is used for primary residency. The | | | | because they could not qualify due to lending |
| homeowner must be current with their existing | | | | program glitches.Home refinance may still be a good |
| mortgage and the mortgage must be insured by one | | | | fit for borrowers who have credit scores below,but |
| of the mortgage companies that are backed by the | | | | the borrower must be able to display compensating |
| government .The home must have been purchased | | | | factors. Like conventional and FHA mortgage loans, |
| before or on January 1, 2010 to qualify. The home's | | | | pay stubs are required, and borrowers must be able |
| value must also have dropped causing the | | | | to document that they have the ability to afford the |
| homeowner to not be able to refinance using | | | | new loan payments. |
| conventional loans. | | | | USLOANZ suggests comparing quotes from |
| There is a vast group of Americans that owe more | | | | conforming and Federal Home Affordable lenders |
| on their mortgage than their house value is worth | | | | who specialize in government relief and Home |
| after real estate values dropped. Another group of | | | | Affordable Refinance Program. |
| Americans are not "upside down" in their mortgage, | | | | |