The New home Affordable Modification Guidelines that the United States Treasury department announced last March for makes millions of homeowners eligible to refinance or modify the terms of their existing mortgage, even if their payments on their current mortgage is up to date. By partnering with financial institutions, the Treasury department aims to reduce the monthly payments made by borrowers on their mortgage.

Should I Refinance?

Targetted by the program are probably homeowners saddled with mortgage payments that go past about 31% of their gross monthly income. The program aims to lower this ratio down to the 31% level by lowering interest payments up to 2% or term extensions up to 40 years or finally forbearing principle at 0% interest.

This principle forbearance means that the lenders only charge homeowners some interest on a portion of the overall mortgage loan and charge 0% interest on the rest of the forbearance amount.

Related posts:

1. The Making Home Affordable Program is on!

2. Fannie, Freddie to channel mortgage resources

3. What is “Making Home Affordable” all about?

4. The Home Affordable Refinancing Program (HARP) has accomplished little

5. Making Home Affordable – Eligibility (TARP Refinance)