This morning there was an announcement about changes to a government refinancing program that could help up to one million homeowners whose homes are worth less than their mortgage.
The Federal Housing Finance Agency, which oversees mortgage finance sources Fannie Mae and Freddie Mac, said it was easing the terms of the two-year-old Home Affordable Refinance Program, which helps borrowers who have been making mortgage payments on time but have not been able to refinance as home values have dropped.
To help underwater borrowers, or those whose loans are worth more than their homes, FHFA said it will scrap a cap that prohibits any homeowners whose mortgage exceeds 125 percent of the property's value from participating in HARP, which is targeted at loans backed by Fannie Mae and Freddie Mac.
A person first needs to find out if Fannie Mae or Freddie Mac backs their mortgage. This can be done through their websites. If indeed that is the case then the next step would be contacting a local mortgage broker/ lender in your area about the details of the program. Although this won't help eveyone it should enable hundreds of thousands of people to refinance into a lower interest rate ultimately saving them money each month by reducing their mortgage payment. Good news for lots of people.