If everything goes as planned, many homeowners in our area may be going into the new year feeling easier about their mortgages. President Barak Obama’s Home Refinancing Program has been received with mixed feelings here in Henrico and on the West coast.
Homeowners in Henrico and the surrounding area that have had mortgage loans that were sold to Fannie Mae or Freddie Mac before June of 2009 are eligible for the revised Home Refinance Program.Mortgages that were refinanced in the last 2 1/2 years are not eligible. Also too, the homeowners must be current in their mortgage payments.
Home Affordable Refinance Program
Started in 2009, this program lets homeowners refinance their homes at lower rates, while bypassing the usual requirement of having to have 20% equity in a home. Very few of the 90,000+ homeowners in this country have taken advantage of this program.
It turns out that those who had lost the most in their homes were not eligible. The program, at the time was limited to those homeowners that had lost no more than 25% of their value. Add to that the cost in closings and other fees, and it added up to thousands of dollars.
Some positive changes in the program
The majjor change, and a positive one is that a homeowners eligibility will not be affected by how far their homes value has dropped. Also too, many of the additional closing charges will be eliminated. That in itself will save several thousands of dollars.
Fannie Mae and Freddie Mac are planning to issue full details to lenders abd loan servicers on November 15th. It is entirely possible that some lenders will be ready to work with homeowners as early as December 1st.