REFINANCE » Refinance Your Mortgage

The U.S. Department of Treasury announced the Making Home Affordable Plan, as part of President Barack Obama's continuing endeavor to resurrect the U.S. economy. Companies are also helping to restructure mortgages to aid the faltering housing market and in reaction to growing unemployment. The plan is designed to aide 7-9 million homeowners in keeping their homes, and to stop the destructive tide of foreclosures. There are two separate programs, The Home Affordable Refinance and TheHome Affordable Modification - both have been created to help different groups of homeowners.

The Home Affordable Refinance (expires June of 2010) helps:

• 4 to 5 million homeowners
• Fannie Mae or Freddie Mac mortgage holders
• People with proven history of responsibly paying the mortgage
• Homeowners to be able to secure new mortgages despite the decline in their home value
• Those with either fixed rate 30 year mortgages or adjustable rate mortgages, who are being encourage to secure new mortgages to take advantage of the historically low mortgage rates and more stable mortgage options
• Only loans contracted before January 1, 2009 qualify

The Home Affordable Modification helps or requires:

• 3 to 4 million at-risk homeowners
• Reduce monthly mortgage payments
• Work in conjunction with an improved Hope for Homeowners program
• Only loans contracted before January 1, 2009
• Maximum principal limit$729,750 for first-lien loans on owner-occupied properties only
• Owner-occupied properties with 2-4 units that may qualify for higher limits
• Documentation required by all borrowers include IRS 4506-T, two most recent paystubs, most recent tax return, and signed an affidavit of financial hardship
• Ownership of property verification through credit reports, and investor-owned or condemned properties will not qualify
• Financial incentives to be paid to lenders and loan providers who modify the mortgages of at risk borrowers who are currently up to date on their mortgage payments
• Modifications that start immediately and until December 31, 2012
• Only one loan modification can occur under the program

Homeowners seeking to take advantage of these programs can contact loan providers now, as they can start to modify eligible mortgages immediately. Due to the sheer volume of qualified program applicants, please expect delays in response time.For complete program details visit the Department of Treasury.

Owning a home is a wonderful thing. It gives you a safe, comfortable shelter from the world outside and all its elements. It affords you and your family a place in which to thrive and to pursue different dreams. Home ownership is also a complicated and expensive affair, and in many ways, is constantly challenging you, the homeowner. No one can afford to rest on their laurels, least of all a homeowner. That's because even though you may be settled into your home and job and the routine of family life, you still need to be on the lookout for opportunities that can really make a big impact in owning a home. One of these opportunities lies in finding or hearing about a home mortgage refinancing rate that could save you money. What's more, you can refinance more than once.

A homeowner can refinance their mortgage more than once in the lifetime of their mortgage. Some states will limit mortgage loan refinancing to once a year. The number of times will be regulated on a state-by-state basis, so before you start doing any refinance research, be sure you know what you can and cannot do, depending on where you live.


It's important for homeowners to remember that refinancing is not a solution to all problems. Nor does it make sense to refinance every single time you come across a rate that's better than the one you're currently paying. For starters, refinancing a mortgage loan costs money. There are fees involved, and you'll have to pay for them. Secondly, it usually takes a few months before you start seeing any savings, so if you get into a cycle of frequent mortgage refinancing you could end up seeing no savings. That's exactly the opposite of your original goal.

To learn more about refinancing, and how many times you can refinance, be sure to sit down with a refinancing expert. He or she could give you just the advice you've been looking for.

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