Welcome to Home Refinancing Guide
Home Refinancing Help Article
. For a permanent link or to bookmark this article for further reading, click here.
Government Aid for Refinancing Home Loans
People in debt and other financial stress face the various serious business of foreclosure on their homes. To prevent that from happening many will turn to refinancing home loans to bail them out of a bad situation.
One major problem is that there are many companies offering refinancing home loans, trying to cash in on the ever increasing refinancing home loans market, but not all these refinancing home loans actually benefit the emotionally and financially distressed homeowner who is on the brink of losing everything.
At this point in time, the financial lenders have dictated the terms of the refinancing home loans and homeowners, especially with limited resources and poor credit standings pretty much had to accept the terms regardless of how costly those terms would be.
Unfortunately, many homeowners are dealing with higher adjustable rates on their mortgages, but the value of their homes is not increasing. Often time since it is becoming increasingly difficult to sell homes in this market, the equity on the homes is decreasing. This makes refinancing home loans even more difficult resulting in heavy financial setbacks from having to use personal money to help refinance.
The US government will be intervening to help prevent the foreclosure epidemic from totally crippling the economy. The government intends on pouring an additional 300 billion dollars into new mortgages. This way the private financial institutions can offer loans to even the most financially devastated homeowners in an effort to save their property from foreclosure.
A good government selling point is that the American taxpayer will not pick up this new funding burden for refinancing home loans. It will be the government sponsored Fannie Mae and Freddie Mac insurance programs that will pick up the refinancing home loans on mortgages that are in jeopardy. The Fannie Mae and Freddie Mac government chartered organizations will buy the mortgages directly from the financial lenders.
There are drawbacks for private lenders. They will be obliged to refinance loans at less than the value of the home itself. This measure means that banks and other lending institutions will sustain losses from this intervention. While homeowners benefiting from the issuance of these new refinancing home loans would be required to share their profits with the government upon the sale of the property.
The government will also benefit from this funding by collecting fees from financial lenders and from the homeowners as well.
There will be a new agency that will coordinate the Fannie Mae and Freddie Mac programs with the participating financial institutions.
It is expected that close to 500, 000 homeowners could benefit from the new refinancing home loans.
After the initial year of operation this new bill will establish a program to generate affordable housing.
This new government bill has been hailed by some of the economic experts as a good jolt to the sluggish economy and a lifesaver to the homeowners who really need it.
Home Refinancing Help Specific links
Home Refinancing Help News
Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance - MarketWatch (press release)
 Bloomberg | Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance MarketWatch (press release) J. "As the leading advocate for homeownership, Realtors(R) knows that helping consumers remain in their homes must be a priority if we are going to move the housing market and our nation from a fragile recovery to long-term prosperity," said Veissi, ... Low Mortgage Rates Helping To Sell Homes 30-year mortgage rate hits another record low Mortgage rates hit record low of 3.78% |
Push intensifies to pass home-loan refinancing bill - The Hill (blog)
 The Mortgage Reports | Push intensifies to pass home-loan refinancing bill The Hill (blog) By Vicki Needham - 05/24/12 05:05 PM ET A leading economist says Congress needs to act fast on refinancing legislation to help the most homeowners and give the improving housing market a boost. Mark Zandi, chief economist with Moody's Analytics, ... Real estate industry pushes Senate on refi bill Northen Virginia Refinancing Expert Explains New Home Affordable Refinance Program Don't HARP on it, refinance program too good to pass up |
FHA program streamlines refinance procedure - AZ Central.com
FHA program streamlines refinance procedure AZ Central.com Still missing is a refinancing program to help underwater borrowers with loans held by investors. The federal government is trying to find a way to encourage or even require investors to agree to lower interest rates for those borrowers. |
Over 40 percent of homeowners owe more than their house is worth - Auburn Journal
Over 40 percent of homeowners owe more than their house is worth Auburn Journal Currently 20 to 25 percent of the homes for sale in the area are short-sales, according to Johnson. The federal government also rolled out new regulations to help homeowners through the Home Affordable Refinance Program 2. |
Mortgage rules prove too strict for some retirees - Washington Post
Mortgage rules prove too strict for some retirees Washington Post It's a mortgage problem that is likely to intensify as home-owning baby boomers by the millions shift into retirement: Although they may have significant financial assets tucked away in retirement accounts, their diminished monthly incomes may not be ... Boomers and refis: a warning |