Alabama Obama Refinance To 125% Announced
Many people who have recently been told they couldn’t refinance under the Obama Refinance plan because they owed more than 105% of the value, can now refinance up to 125% of the home’s value. Today, it was announced by HUD Secretary Shaun Donovan that people who owed more than 105% of what their home was worth could now refinance up to 125% of the home’s value. By expanding the guidelines to the Making Home Affordable plan, many people right here in Alabama will now be able to refinance and take advantage of lower rates.
Here in Alabama, and in many other parts of the country – there are many people who currently owe more than 105% on their home and prior to today, they are unable to refinance. Now, with the Obama 125% refinance people living in Alabama can refinance their home as long as they don’t owe more than 125% of what the home is worth.
According to a CNN news story:
The move acknowledges that home prices in many areas have fallen so far that many people were shut out of the program. Some 67% of homeowners in Las Vegas — one of the hardest hit areas where Housing Secretary Shaun Donovan announced the expansion Wednesday — owe more than their homes are worth.
More than one in five borrowers are now underwater, with homes in parts of California and Florida losing more than 50% of their value, according to Zillow.com, a real estate Web site. Some 20 million people own homes worth less than their mortgages.
“The president’s Making Home Affordable plan is already helping far more than any previous foreclosure initiative and with today’s announcement we will extend its reach still further,” said Donovan.
A story at Bloomberg said:
Paul Miller, an analyst with FBR Capital Markets in Arlington, Virginia, said mortgage brokers have told him that many aren’t sending borrowers through the program because it’s cumbersome and the loan applications “still have a lot of bells and whistles, which makes them difficult to do.”
What The Announcement Means For People In Alabama
While it is difficult to tell exactly how many people in Alabama will benefit from this change, there are surely many people right here in Alabama who will now be able to refinance – and hopefully avoid foreclosure. For more information about the announcement or to find out if you qualify under the new guidelines, be sure to speak with a Alabama mortgage expert today.
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