Homeowners in trouble of foreclosing on their homes can now contact their lender and request to refinance to a lower interest rate. Homeowners who have not missed a mortgage payment are eligible to qualify for the loan modification program, which is funded through a portion of the $700 billion approved as part of Tarp I.
The Making Home Affordable program – the $75 billion project announced earlier this week – pledges to help make homeownership more affordable. It is estimated that up to 9 million Americans may benefit from this new program, which uses a combination of tax incentives and government subsidies to help lower interest rates and reduce the home’s principle.
The Home Affordable Refinance portion of Obama’s plan is intended to aid homeowners, current on their mortgage payments, who have lost equity in their homes. This portion of the Making Home Affordable program gives borrowers with conforming home loans, that are backed by Fannie Mae and Freddie Mac, the ability to have their homes refinanced.
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