Home Affordable Refinance - Are You Eligible to Refinance Your Home Loan and Avoid Foreclosure?

By Sani Orman

The US home owners are looking for best options to save their houses from foreclosures. The 2009 Package declared by the US Federal Government provides them with many such options. This plan gives you the home affordable refinance option that can help many house owners saving their dream home from foreclosure. Earlier, banks were not really interested in refinancing but after this package they are truly inclined to help the applicants. This is because the plan provides certain incentives to the banks for each refinancing deal that they make.

The Federal Government provides various offers but it has also declared certain eligibility conditions in order to avail this program. Those who are looking forward to these offers need to be well informed about the conditions before applying for them.

Here are few points that would determine whether you are eligible for Home Affordable Refinance or not:

. To apply for a refinance your loan deed must be owned or insured by Fannie Mae and Freddie Mac.

. Your loan value must exceed the current market value of the house over 105%.

If you are eligible for the home affordable refinance, it would surely prevent you from the foreclosure. Here are the ways to make it possible.

. The loan monthly payments have now been restricted to 31% of the owner's gross monthly income.

. There are lower rates of interest being offered. The interest rates have been decreased from 6.5% to 5.16%.

. You are provided proper guidance and help by the counselors appointed by the HUD (US Housing and Urban Development) department. These act as your representative in your dealings with the bank. They do not ask for any sort of payments as they are paid by the Federal Government directly.

. You also have access to the grants that the government provides you. One of these is the personal loan. You may ask for it in order to have some disposable income or to pay your debts.

Home affordable refinance gives you a way to stay in your own home rather than losing it due to the financial constraints.