Government Mortgage Refinance Plan – Home Affordable Modification

Filed Under (Mortgages) by admin on 09-09-2009

The government mortgage refinance plan is helping home owners to modify their mortgage so they can avoid foreclosure.  The home affordable modification program was designed to help home owners reduce their monthly pledge payments so they can stay in their home.  The the money-lender’s taking over a home does not relieve anyone.  It does not help the bank, it does not help the home owner and it does not help the frugality.  President Obama realizes this and that is why he created the Making Home Affordable Plan.

By modifying your mortgage you have the opportunity to take advantage of historically low mortgage interest rates in a lifetime when mortgage lenders are being urged to actually lend money.  Right after the credit crisis truly struck home in September of 2008 most banks and financial institutions were hoarding money and were not lending to anyone.  The fear of defaults on loans and mortgages made banks keep their money to themselves.

When President Obam created the Making Home Affordable Plan part of the plan was to urge banks and financial institutions to start lending money again.  He saw the economy spiraling downward as consumers didn’t have access to any money.  To get banks to lend money President Obama created incentives.  No one really knows what these incentives are but they are obviously working as consumers are now gaining access to these low interest rates.

It is likely that we are going to continue to see low interest rates as the Federal Reserve Bank has announced that they are going to continue to buy US Treasuries until the end of October.  No one knows what will happen at the end of October but for now it looks like mortgage interest rates are going to continue there downtrend and we may even see 30 year mortgage rates well among the shades 5% very soon.

With the government mortgage refinance plan in full swing now is the time to get out there and find that low refinance rate you have been in pursuit of.  Many mortgage lenders are advertising pledge rates under 5% so there are some great deals out there.  You will never know how low of a pledge interest rate that you can get until you contact some lenders and go through the mortgage refinance process.

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