Obama’s Home Affordable Plan Refinance was introduced as part of the three-prong plan to help the sagging real estate market in February 2009. The original expiration date was June 10, 2010. Fortunately, for those who qualify, the program will not end until June 30, 2011.This stimulus bill program had three ways to impact the economic situation in the United States through the real estate market: First Time Home Buyer program, Refinance, and Loan Modification. The market has shown positive response from these efforts after over a year of operation.Refinance through this program is referred to as HARP, or the Home Affordable Refinance Program. This program is targeted to the homeowner who is current on their mortgage, but has an unfavorable loan. The economic downturn and dropping real estate values have caused their equity to drop below what is considered necessary for refinancing.Through this government program, the amount of the loan can be up to 125% of the market value of the home. Originally, it was 105%, and this change was enacted later in the program’s first year. This is an amazing opportunity for a homeowner to get into a more favorable loan package. It is important to remember that a traditional refinance usually requires at least 20% equity in the home.If you are paying on a high-interest loan, you will see an immediate difference in your monthly payment if you qualify for a refinance through Obama’s Home Affordable Plan. Remember that this program deadline has been extended to June 30, 2011.
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