If you are in financial trouble, you may need to refinance your mortgage to avoid foreclosure. The Making Home Affordable program is a government-sponsored program that will allow you to refinance your mortgage, if you meet certain terms and conditions.

Significance

If your loan is guaranteed by Fannie Mae or Freddie Mac, you may be able to refinance your loan and lower your payments so that they are more affordable. This program allows you to receive a lower rate of interest.

Considerations

To refinance, there can be no 30-days-late payments on your mortgage within the last year. Your mortgage payments should be current when you apply. Your first mortgage balance should not be greater than 125 percent of the current market value, according to Makinghomeaffordable.gov.

Size

Your home should be between one and four housing units to qualify for refinancing under this program. If you have other questions, speak with your mortgage servicer.

Documentation

You will need to gather all of the documentation and paperwork concerning your financial affairs. According to MakingHomeAffordable.gov, you will need your mortgage statement, gross income information, recent tax returns, information on any second mortgages or equity loans, and all credit card balances and monthly payments. You will also need information for all other liabilities and obligations.

Benefits

Call your mortgage servicer and let them know you are interested in the Making Home Affordable program and they will be able to take you through the steps.

Source:

Making Home Affordable - Refinancing

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