Reformatted Home Affordable Refinance Program
Reformatted Government HARP Program
“The numbers are one indication of the demand there may be for the Obama administration’s plan to expand its mortgage refinancing program to homeowners who pay their mortgage on time but have been unable to take advantage of low mortgage interest rates because sinking home values have left them with insufficient equity to refinance their loans.Officials have said the number of participants in the Home Affordable Refinance Program could double from the current 894,000 by loosening the lender guidelines for government-backed mortgages and removing the current maximum cap of a 125 percent loan-to-value ratio. The program still would exclude homeowners whose loan-to-value ratio is less than 80 percent, but some legislators have called for that to change, too.
Specific details of the program are scheduled to be announced Nov. 14.
It will help some homeowners but a reformatted HARP won’t be a panacea for the housing market,” Humphries said. “There’s no one single overarching policy that’s going to get us out of it,” he said. “The housing economy is not going to get back and operate on all cylinders for four or five years.” Get the full article at ChicagoTribune.com
I think the Government Reformatted HARP Program is not the ultimate solution to the housing problems, yet it is a good step in the right direction. The new Home Affordable Refinance Program might be too late for Obama who is losing popularity, but it will help thousands of borrowers currently with mortgages underwater to float.
So What Is The Next Step?
If you will do nothing.. don’t expect anything to happen. You must bump your credit score up! It will give you better leverage when facing the lenders, and better negotiation position when applying for any financial need.
Lets not forget you are probably paying $500-$1000 extra per year in higher interest rates, and credit payments to those rich credit companies pocketing your payments hoping you keep doing nothing.
If your score is below 700, you might want to clean it yourself – get this ‘Credit Repair University’ which will save you money and time.
Yes, you might need to invest a small sum to get a grip of things.. But if you think education is expensive.. try ignorance..
You are probably paying thousands of dollars per year in fees and interests to credit companies which could be going straight to your pocket. Don’t be cheap when it comes to financial education.. Ignorance costs more.