Thursday, February 16, 2012 - Article by: William J. Acres - Velocity Financial LLC -
President Obama announced on January 25th, 2012 a proposal for underwater borrowers who have not been able to take advantage of the lower interest rates currently being offered because they don't have an FHA loan or a Freddie / Fannie owned loan.
He Said "I am sending Congress a plan that will give every responsible homeowner in America a chance to save about $3,000 a year on their mortgage by refinancing at historically low rates," "No more red tape. No more runaround from the banks."
For those with privately held loans, the president will ask Congress to allow FHA to refinance their mortgages in a program to be financed by a fee charged to large banks based on their size and the riskiness of their portfolios. The estimated cost of the program would be $5 billion to $10 billion, depending on the number of participants. Only houses, whose values fall within F.H.A. guidelines, from about $270,000 to $730,000 depending on location, would qualify.
So in a nutshell, there is a proposal on the table... the President will put the bill together and submit it to Congress and see if it passes... the complete details are not out yet, but it's possible this program can provide relief to those underwater borrowers who have not been able to take advantage of these low rates in the past to finally partake... Stay tuned for more info in the future. WilliamAcres.com
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