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Obama's Home Refinance Program Limit Increased to 125% of Home Value

In order to help more people refinance their mortgages, at the beginning of July 2009 the Obama administration increased the Loan-to-Value (LTV) limit for the Home Affordable Refinance Program (HARP) on July 1st.  Qualifying homeowners may now be able to refinance up to 125% of the value of their home whereas previously the limit was 105%.  

This is an exciting change for homeowners in particularly hard hit markets.  Many people who wanted to refinance so they could take advantage of the historically low rates were unable to do so because their homes had dropped so much in value.  People who were previously shut out of the program may now have an opportunity to refinance their mortgage with better terms.

"This is a change that will put affordable refinancing opportunities within reach of performing borrowers who have suffered the effects of local home price erosion," said Freddie Mac Executive Vice President Don Bisenius.

It is estimated that an additional 4 to 5 million home owners will now be eligible under the new HARP limits.  To qualify, homeowners must be current on their payments and have loans that are owned or backed by Fannie Mae or Freddie Mac.

If you're interested in taking advantage of this opportunity coupled with historically low rates, act now to get free expert advice from one of our trusted lenders.



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