Texas Obama Refinance To 125% Announced
Today, it was announced by HUD Secretary Shaun Donovan that people who owed more than 105% of what their home was worth could now refinance up to 125% of the home’s value. This is great news for people all over Texas who may have been told they couldn’t refinance prior to today because the previous limit was 105%. This guideline expansion to the Making Home Affordable plan is a another sign that the Obama administration is doing everything they can to help prevent foreclosures.
Both right here in Texas as well as all over the US, there will now be thousands of people who currently owe more than 105% of their home’s value take advantage of lower rates while they are available. Now, people all across Texas will be rushing to refinance while rates are low.
According to a story at Bloomberg:
A drop in values has left about 20.4 million of the U.S.’s 93 million houses, condos and co-ops with mortgages higher than the properties are worth as of March 31, Seattle-based real estate data service Zillow.com said in a report May 6.
According to CNN:
The move acknowledges that home prices in many areas have fallen so far that many people were shut out of the program. Some 67% of homeowners in Las Vegas — one of the hardest hit areas where Housing Secretary Shaun Donovan announced the expansion Wednesday — owe more than their homes are worth.
More than one in five borrowers are now underwater, with homes in parts of California and Florida losing more than 50% of their value, according to Zillow.com, a real estate Web site. Some 20 million people own homes worth less than their mortgages.
“The president’s Making Home Affordable plan is already helping far more than any previous foreclosure initiative and with today’s announcement we will extend its reach still further,” said Donovan.
What This Announcement Means For People In Texas
It is somewhat unclear exactly how much of an impact this expansion will have across the nation – but here in Texas and in many other states — many, many people owe more than 105% of their home’s value, and this expansion will help. For the most up to date information on the new Obama refinance expansion announcement, be sure to contact a Texas mortgage expert today!
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