Owe Greater than Your Orlando Real Estate is Worth?

If you're a homeowner who's unable to refinance to a lower 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 prolonged for one more year. This program, intended to help borrowers whose homes have fallen in value, was because of expire as of June, 2010. Fortuitously, HARP has been extended and can now stay in effect through June 30, 2011.

How does HARP assist?

The program allows qualified borrowers who owe greater than their homes are worth to refinance at lower interest rates. It is projected to help 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 could see a right away reduction in your payments. Nonetheless, some homeowners may not see their interest payments go down in the event that they refinance to a set charge and payment. These include homeowners who are:

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

If you are considered one of these homeowners, you should still take into account refinancing because it may save you a great deal of cash by lowering the amount of interest you pay over the life of your mortgage.

Who qualifies for HARP?

You may 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 are able to pay the new mortgage payments.
" The refinance improves your means to pay your mortgage long term.

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