Indiana Mortgage Relief: Obama Announces Help for Homeowners

Indiana Mortgage Relief:

Obama Announces Help for Homeowners

WASHINGTON — President Barack Obama is aiming mortgage relief at members of the military as well as homeowners with government-insured loans, the administration’s latest efforts to address a persistent housing crisis.  On the heels of economic crisis, any Indiana mortgage relief is a welcome sight!

In his first full news conference of the year Tuesday, Obama announced plans to let borrowers with mortgages insured by the Federal Housing Administration refinance at lower rates.  That could save the average homeowner more than $1,000 a year.

Under the housing plans Obama announced Tuesday, FHA-insured borrowers would be able to refinance their loans at half the fee that the FHA currently charges. FHA borrowers who want to refinance now must pay a fee of 1.15 percent of their balance every year. Officials say those fees make refinancing unappealing to many borrowers. The new plan will reduce that charge to 0.55 percent.

See if you quailify for a refinance by clicking here

With mortgage rates at about 4 percent, the administration estimates a typical FHA borrower with $175,000 still owed on a home could reduce monthly payments to $915 a month and save $100 a month more than the borrower would have under current FHA fees.

Though 2 million to 3 million borrowers would be eligible, an administration official would not speculate how many would actually seek to benefit from the program. The FHA provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. The loans typically go to homeowners who do not have enough equity to qualify for standard mortgages. It is the largest insurer of mortgages in the world.

-Associated Press

You can view the full press conference from 3-6-2012 here: