In a move that is sure to elicit criticism, the Obama administration announced yesterday that borrowers with mortgages worth up to 125 percent of their home’s value will be able to refinance under the administration’s program to aid foreclosure victims. The one hitch is that the homeowner cannot be behind on their mortgage payments.
The goal of this change is to help homeowners who have not been able to take advantage of the low interest rates that have been available in recent weeks due to the fact that the value of their property has dropped significantly. The program currently caps eligibility for the program to homeowners that have a loan-to-home value ratio of 105 percent. Many homeowners in the country are unfortunately well above that ratio.
The change will certainly draw the ire of people who believe that policies like this are the reason that we got into the housing mess in the first place. However, rising interest rates could be the real issue. The days of 4.8 percent interest rates are in the past, and refinancing has noticeably decreased in recent weeks. 30-year fixed rate mortgages are now back at 5.4 percent.
This article originally published at http://dc.urbanturf.com/articles/blog/obama_expands_foreclosure_program/1093
Most Popular... This Week • Last 30 Days • Ever
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
Another development is moving forward spitting distance from another entrance of the ... read »
The outpost will bring some of Sandlot's successful partnerships and experiences to a... read »
The H Street Corridor once epitomized DC's development boom, but construction activit... read »
With 2021 in the rearview mirror, UrbanTurf breaks down a series of numbers that prov... read »
UrbanTurf is re-running its primer on property taxes which outlines a few things that... read »
After two years of market forces left this neighborhood nearly unrecognizable, signs ... read »
The Shaw pipeline is starting the year off hot.... read »
The upzoning would mandate additional Inclusionary Zoning units for developments alon... read »
Is U Street regaining steam as the development center of gravity in the neighborhood?... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro