Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan.  Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.

Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property.  For example, if your property is worth $200,000 but you owe $210,000 (or less) you may qualify.  The current value of your property will be determined after you apply to refinance.

This program is limited to loans held or securitized by Fannie Mae or Freddie Mac.  Check with your lender as they may have sold the loan to Fannie Mae or Freddie Mac but they are still managing the loan.

There is much more information available on:  www.whitehouse.gov go to the blog and scroll down to Feb. 18th.

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