Wednesday, June 30, 2010

Obama Breathes New hope into the Making Home Affordable Mortgage Refinance Plan

President Obama signed in a modification to one of the Making Home Affordable Plan's mortgage assistance programs. HARP, or the Home Affordable Refinance Program has been modified by obama to become more liberal towards the homeowners home debt to home value ratio. Before the new guidelines homeowners who had a mortgage that was upside down, or underwater, or in other words if the mortgage balance was larger then the value of the home the homeowner simply did not qualify for the obama refinance assistance program.

On July 1st 2009, Obama expanded the reach of the Make Home Affordable Mortgage Refinance Program. Before the recent change the mortgage refinance side had a qualifying term that restricted the eligibility of this program to Homeowners who had a loan to value percentage of 105% or less. Today however a Homeowner who has as high of a loan to value ratio as 125% is now eligible under the new Obama modifications put in place. This is quite a significant increase in reach in regards to the HARP qualifying terms. Now we all just have to hope that the lenders are willing to work with those kind of numbers.




General Benefits of the expanded version of the Home Affordable Refinance Program



  • The expanded reach will allow more Homeowners to have the opportunity of obtaining a mortgage refinance agreement and thus allowing American Homeowners to Make Home Affordable.
  • The overall economy should benefit if even only slightly in consideration to the increase of mortgage refinance agreements, a dip in foreclosures and mortgage defaults.


Possible Downfalls of the new Modifications made to the Mortgage Refinance Plan



  • The Broader reach may prove to be pointless if the Mortgage Lenders are unwilling to work with the riskier Borrowers.
  • If the lenders get to eager or over zealous with the Mortgage Refinance opportunities it could eventually cause a bigger problem down the road.



What about the Making Home Affordable Loan Modification Program?

The Make Home Affordable Loan Modification Program is unaffected and remains the same in regards to the terms of qualifications for the Make Home Affordable Plan.


Related Articles


Apply for HARP Assistance - Obama Refinance Program

Make Home Affordable - Obama Mortgage Help Plan
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1 comment:

  1. Homeowner HelpJuly 13, 2010 at 11:02 AM

    Though I think the changes Obama made to HARP is a wise decision and honarable attempt to expand the reach of the refinance side to the Making Home Affordable Plan the results will be null give or take.

    I think HAMP will over shadow any willing particiapants, I make this arguments becuase of the lender incentive.

    ReplyDelete

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