| If you are one of so many Americans who has fallen | | | | available through Hope for Homeowners plan. |
| victim to the economic recession and is finding it harder | | | | With a FHA loan, the homeowner should investigate |
| and harder to pay your monthly mortgage? If you are, | | | | refinancing. The Hope for Homeowners initiative offers |
| you should make an appointment with a financial | | | | hope to homeowners who have been denied |
| advisor who can go over the pros and cons of home | | | | refinancing in the past. Lower property values have |
| loan modification versus FHA refinancing. | | | | disqualified many people from refinancing. When a |
| There are two options available for homeowners who | | | | house loses value, it loses equity. If equity had dropped |
| cannot pay their mortgage loans. They are a loan | | | | 20%, homeowners were not eligible for traditional |
| modification and FHA refinancing. The one you choose | | | | refinancing. |
| depends mainly on who insures your loan. If you don't | | | | There is a standard procedure for lowering your |
| know, call your lender and ask. There are three main | | | | monthly mortgage payments through a Making Home |
| insurers: Freddie Mac, Fannie Mae, and the Federal | | | | Affordable loan modification plan. There are incentive |
| Housing Administration (FHA). These companies do not | | | | payments for both lenders and borrowers that will help |
| lend you money; they insure it. This means lenders | | | | lead to favorable loan modification and encourage |
| have less of a risk and subsequently will offer you a | | | | economic stability. If you have a FHA insured loan, you |
| lower interest rate. | | | | can get a home modification but not through the |
| Is there a difference between insurers? Not really. The | | | | Making Home Affordable plan. The programs that deal |
| determining factor is your specific loan and who | | | | with FHA loan modifications are not as straight |
| insures it. There isn't much difference between a | | | | forward, strict and they do not follow the same |
| mortgage insured by FHA and a loan insured by | | | | procedures. |
| Fannie Mae or Freddie Mac. The insurer only really | | | | It is not hard to understand the differences between |
| matters when restructuring enters the picture. Loans | | | | loan modifications and FHA refinancing if you have the |
| insured by Fannie Mae or Freddie Mac can participate | | | | right information. Research it and talk to a financial |
| in the new Making Home Affordable mortgage loan | | | | advisor about reducing your home loan. |
| modifications. If the FHA insures the loan, refinancing is | | | | |