In an effort to get credit flowing again and curb the housing crisis, our government has designed a comprehensive plan that will offer more options for homeowners and homebuyers. Here are some of the key components and how they may impact you:
- Mortgage interest rates are being held below market rates to help as many people as possible buy homes and refinance their mortgages in the immediate near future.
- Making Home Affordable, a recently launched program, is providing assistance to mortgage borrowers who qualify under the conditions of the program. The program is offering increased refinance opportunities for borrowers with mortgages owned by Fannie Mae or Freddie Mac and who don’t have more than five percent negative equity on their first mortgage. Also, the program is providing opportunities for borrowers to modify their mortgages based on an extenuating circumstance.
- Guaranteed funding is being provided to banks and mortgage companies to ensure all homeowners and homebuyers who qualify can obtain a sound mortgage loan. Companies are in a position to make sure the funds are available to all interested and eligible homeowners and homebuyers.
The plan is complex but has the elements necessary for recovery. Once a vast majority of homeowners and homebuyers have secured the appropriate financing to meet their homeownership needs, the housing industry will reach a level of stability to support current and even increased housing prices.
