Rumors have abounded that the Federal Government has been back at the drawing table these past few months, trying to retool the Making Home Affordable programs. The biggest problem is that only a very few borrowers have been able to take advantage of the programs – less than 900,000 homeowners have been able to refinance under HARP, including just 70,000 underwater borrowers instead of the millions who need help.
CoreLogic, which tracks mortgage and foreclosure information, estimates there are 20 million homeowners who could benefit from today’s historic low mortgage interest rates by refinancing. On average, they would drop their loan interest rate by 1 percent, saving an estimated $24 billion in payments.
Read the details of the new mortgage program.