It was great to see that Obama Administration recently introduced the Mortgage Refinancing Program. The best part with the introduction of the new refinancing program is that approximately 4 million to 5 million homeowners will be able to avail the refinancing program.

When do you qualify for the Mortgage Refinancing?

1.    You are eligible for availing the program if the home you are residing is your primary residence.

2.    The amount you currently owe on the first mortgage is either the same or less than your property’s current value. The amount you owe can’t be 105% of present market value.

3.    To qualify it is also essential that in the last one year you haven’t fallen behind on mortgage refinancing payments for more than 30 days.

4.    Your loan is either backed by Freddie Mac or Fannie Mae.

5.    You should also be able to prove that you have a steady income and your financial condition allows you to make the new mortgage payments regularly.

When you don’t qualify for the Mortgage Refinancing program?

You fail to qualify for the refinancing program when If you are a homeowner and you are delinquent already. However, you may qualify for the Home Affordable Modification Program or If it is an investor owned property, you don’t qualify for the program.

Consumers who have purchased houses a couple of years ago with a loan period of 30 years and a fixed rate of interest of 6.5% or higher will not qualify for a refinance program as their loan-to value ratio is more than the limits set by either Freddie Mac or Fannie Mae.

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