Unless there is new funding or new programs developed many people could miss out on the governments Make Home Affordable refinancing plan. There is still time to take advantage of it but it's good to know how long it lasts. Also, a refinance doesn't automatically mean you'll be better off. Find out here what to watch for, along with other little known facts that will help you stay on top of things.
When Does the MHA Program End?
The Home Affordable Refinancing Plan ends on June 10th, 2010. This means the entire process - from the closing of the loan to the actual funding of it - has to be completed by no later than that date. Obviously, this information will become more and more important as the time gets nearer. It'll need to be taken into account when deciding if or when to take advantage of the program.
3 Helpful, But Little Known Facts
1.
Even if you get approved for refinancing under the new plan -- it doesn't necessarily mean you'd be better off. As always, "the devil is in the details". You'll still need to compare interest rates, the monthly payment, and the total amount you'd pay over the full term of the new loan. This is very easy to do with a mortgage calculator.
2.
Unlike the loan modification side of the MHA plan, you will NOT be able to refinance if you are behind on your mortgage payments. Even if you are current when you apply, if you've been behind on your payments - by 30 days or more - more than ONCE in the past 12 months ... you will not qualify. (That's when you would look into getting your loan modified under the plan instead)
3.
Under no circumstances will refinancing under the Obama plan reduce the principal balance of the loan. You can, however, save money if you can lower interest rates.
I hope these facts are helpful as you consider the best options for your situation. The best advice anyone can receive is to do their due diligence, and weigh all the facts before making any decisions.
