California 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 to many homeowners in California because now they can refinance up to 125% of the homes value where the prior limit under the Obama Refinance Plan was 105%. This expansion to the Making Home Affordable plan will help many people right here in California and is another sign that the Obama administration is doing whatever they can to contain the foreclosure problem.
Right here in California, this change is expected to help thousands of people who currently owe more than 105% of their home’s value to refinance to lower rates. Before rates go up again, it is expected that many people here in California will rush to get their refinance applications in.
According to CNN:
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.
News reports in Bloomberg said:
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.
For California Homeowners: What This Means
While it is difficult to tell exactly how many people in California will benefit from this change, there are surely many people right here in California who will now be able to refinance – and hopefully avoid foreclosure. For the most up to date information on the new Obama refinance expansion announcement, be sure to contact a California mortgage expert today!
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