Owe More than Your Orlando House is Worth?

If you're a homeowner who is unable to refinance to a decrease interest rate as a result of your Oralndo home's value has decreased, there's hope.

A program called the Home Affordable Refinance Program (HARP) has been extended for one more year. This program, intended to assist borrowers whose homes have fallen in value, was as a result of expire as of June, 2010. Luckily, HARP has been extended and will now stay in effect through June 30, 2011.

How does HARP assist?

The program allows qualified debtors who owe greater than their homes are worth to refinance at lower interest rates. It's projected to assist 4 to 5 million homeowners with loans owned or assured by Fannie Mae and Freddie Mac.

If you're an Orlando home owner whose mortgage interest rate is significantly higher than the current market rate, you might see a direct discount in your payments. However, some homeowners may not see their interest payments go down in the event that they refinance to a fixed fee and payment. Those include homeowners who are:

" paying interest only
" have a low introductory rate that can increase in the future
" face a balloon payment

If you are certainly one of these homeowners, you should nonetheless take into account refinancing as a result of it may save you a great deal of cash by decreasing the amount of interest you pay over the lifetime of your mortgage.

Who qualifies for HARP?

It's possible you'll qualify if:

" You own and live in your home.
" The mortgage on your home is owned or guaranteed by Fannie Mae or Freddie Mac.
" When you apply, you are current on your mortgage payments.
" The amount you owe on your mortgage does not exceed 125% of the current market value of your property.
" You're able to pay the new mortgage payments.
" The refinance improves your capacity to pay your mortgage long term.

Article Source: http://www.onlinearticlessite.com

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