Categorized | Finance and Mortgage

Mortgage Refinancing Changes Expected

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The United States government is planning for more changes in the coming months regarding refinancing restrictions. The new changes that will be put in place would make it possible for more people to refinance their mortgages.

With another round of foreclosures set to hit the market, the government is hopeful that the new plan will assist the market in getting back onto its feet. However, many analysts and government officials alike believe that the new plan is not enough to provide the help truly needed in the current situation. In addition to easier refinancing options, the plan also includes the conversion of empty homes into rental properties.

The government hopes that the new plan, which will cut back on refinancing fees, and also make it possible for those with underwater mortgages to refinance, will provide a much needed boost to both the real estate market, and the economy as a whole. Various measures already taken by the government thus far to improve home sales have not provided much improvement to date.

Even with record-low mortgage loan rates, housing sales and values are down across the country. Foreclosures are also once again on the rise. In fact, reports indicate that the number of foreclosures to hit the market will be at record levels in the coming year.

With various states already struggling with down home prices, a new influx of foreclosures will be absolutely detrimental. This new plan is not the first time the United States government has addressed refinancing options. In 2009, they began HARP, which was intended to provide assistance to millions of homeowners. Unfortunately, restrictions built into the program made it almost impossible for all homeowners to ever refinance. Analysts hope that this new plan does not carry the same impossible restrictions, or else it will, once again, be an utter failure.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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