President Obama’s Home Affordable Refinance Program offers a unique opportunity to distressed house makers who have gone upside down on their existing home mortgages and are now faced with possible home foreclosures and financial hardships too. By using this federal plan, which is available in two types, struggling homeowners can either secure a home mortgage modification or refinance their current mortgages with mortgage rates as low as 2%.

1. The existing home mortgage has to be sanctioned on or before 1st January, 2009.


2. The house to be refinanced should be the primary residence of the applicant.


3. The value of the current mortgage should not exceed $ 729,500 for a single unit home.


4. An applicant needs to furnish a letter of listed financial hardships along with the reasons.

1. Your monthly mortgage payment could be less than 31% of your gross monthly income.


2. Banks and mortgage lenders would reduce the mortgage rates to as low as 2%.



3. You would not be required to pay any processing or closing fees for modifying or refinancing your home mortgages.


4. By staying current on the new monthly mortgage payments you are eligible for a reduction of principal loan balance up to $ 5000 over a period of 5 years.


5. The lower rates of interest would remain fixed for a term of 5 years.

Even if you fail to qualify for the federal program, there are plenty of other mortgage refinancing options available to house makers with a bad credit. An expert guidance could be of immense help in exploring the different alternatives and availing a bad credit mortgage refinancing loan as per your financial needs and requirements. To get more information on loan modification or mortgage refinance loans, it is hereby recommended to utilize the professional services of reputed online service providers like LoansStore.