New Program To Aid Mortgage Holders 1 | (NAPSA)—There’s good news for homeowners who are looking to take advantage of today’s historically low mortgagerates. A new program called Making Home Affordable is part of the Obama administration’s compre- hensive strategy to get the hous- ing market back ontrack. It’s projected that through the program up to 9 million Ameri- can families may be eligible to refinance or modify their loans to a payment that is more affordable, both now and into the future. Here are some questions about the program’s refinancing initia- Vice President Patricia McClung Q:[’m current on my mort- American families may be able to refinance their loans to a more tive and answers, courtesy of mortgage investor Freddie Mac: gage. Will the program’s refinancing initiative help me? A: Eligible borrowers who are of Freddie Mac says millions of affordable payment. Also, consider that refinancing current on their mortgages but from an adjustable-rate to a fixed- creased in value may now have the opportunity to refinance. Through payments or balloon payments, may also provide long-term stability. Q:What are the interest have been unable to take advantage of today’s lower interest rates because their homes have de- the program, mortgage loans that are owned or guaranteed by Fannie Mae or Freddie Mac may be eligible for refinancing. Your mortgage company can tell you who owns your loan or you can look up your loan online at www.MakingHomeAffordable.gov. Q: How do I knowif the refinance will improve the longterm affordability or stability of my loan? A: Your lender will give you a “Good Faith Estimate” that includes your new interest rate, mortgage payment and the amount you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, refinancing may not be right for you. rate loan or eliminating higher-risk loan terms, such as interest-only rates and termsof this refinanceoffer? A: The rate will be based on marketrates in effect at the time of the refinance and any associated points and fees quoted by the lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans will have no prepayment penalties or balloon payments. Freddie Mac’s mission is to provide liquidity, stability and afford- ability to the housing market. It does this by making sure that financial institutions have mort- gage money to lend and makingit easier for consumers to afford a decent house or apartment. To learn more, visit the Web site at www.MakingHomeAffordable.gov.
