Government Refinance

Welcome to Government-Refinance.com! I'm a mortgage refinance enthusiast and created this website to share information about refinancing and, in particular, government refinance programs. The Making Home Affordable program is designed to keep people from losing their homes in this tough economy by modifying or refinancing their current mortgage. With interest rates at historic lows, some strapped mortgage holders will be able to refinance at a lower rate.

For homeowners with less than 20% equity in their homes or with a low credit score, government-backed loans are one of the few refinance options available. Under the Home Affordable Refinance Program, homeowners can borrow up to 105% of the current value of their home. The program is geared to homeowners who are up to date with payments for their current mortgage but who cannot refinance through other channels because their home has fallen in value.

The Home Affordable Refinance Program is available only for the homeowners’ primary residence; second homes and investment property do not qualify. The loan must be owned or guaranteed by one of the two government-backed agencies, Freddie Mac or Fannie Mae. You can find out if yours is guaranteed by these agencies by contacting your current mortgage servicer.

Government refinance programs also allow up to 10% of homeowner debt forgiven if the borrower is "underwater", that is, if the borrower owes more than the house is worth. To take advantage of this program, the borrower must be current with payments on the existing mortgage, live in the house that will be refinanced, and owe at least 15% more than what the house is worth. However, loan forgiveness can negatively affect your credit report and can have tax implications, so speak with a tax expert before making a decision.