Bank Mortgage Programs or Government Programs Which is Better?

Izvor: KiWi

You should take the time to learn what is Bank of America Refinance program and how many mortgage programs the bank offers. So, even if you do not have enough equity in your home and have been current on your mortgage payments for at least 12 months, you may still be eligible for refinancing under the bank's Home Affordable Refinance program. This program is part of the federal government's Making Home Affordable program and it was developed to help those who can't qualify for a traditional refinance. The program will be able to help reduce the monthly mortgage payments for borrowers. However, you are only eligible under this program if your loan is owned by Fannie Mae (Federal National Mortgage Association) or Freddie Mac (Federal Home Loan Mortgage Corporation). Other than this, your first mortgage has to be 105% or less of your home value, your home is a single-family home unit and you have not been more than 30 days late on your monthly mortgage payments for at least 12 months.

FHA administers a number of mortgage programs, based on Section 203(b), that have special features. One of these programs, Section 251, insures adjustable rate mortgages (ARMs) which, particularly during periods when interest rates are low, enable borrowers to obtain mortgage financing that is more affordable by virtue of its lower initial interest rate. This interest rate is adjusted annually, based on market indices approved by FHA, and thus may increase or decrease over the term of the loan. In 2006 FHA received approval to allow hybrid ARMs, in which the interest is fixed for the first 3 or 5 years, and is then adjusted annually according to market conditions and indices.

There are few lenders providing effective services for both these financial strategies. Hence, working capital loan in the form of business cash advance programs or commercial mortgage loans should be chosen with great care.

Strategies to finance short-term working capital needs much greater attention than what is usually practiced. There are two short-term working capital financing options, business cash advance programs and short-term commercial mortgage programs that have been often overlooked. But these two working capital funding options are excellent for small and new business ventures to ward initial financial obstructions off their way. Business cash advance is one of the best financing options for businesses accepting credit cards as mode of payment. Speaking of benefits, business cash advance offers great help even to prospering businesses. For instance, even thriving businesses need working capital that might not be borrowed from a bank. Under these circumstances, business cash advance or merchant cash advance programs come to the rescue. Retail chains, bars, and restaurants, service businesses are highly benefited from these finance programs.

The federal government announced the expanded Government Mortgage Help Plan on 26March 2010 at the White House. As this is a follow-up of the previous plans that went in vain, people wonder whether the new plan will prove effective. With this revised plan, the government aims at helping not only the 7 million households that are on their mortgages, but also the 11 million homeowners who owe more on mortgages than the market value of their houses. The Two Target Groups Government mortgage programs always try to help borrowers come out of their debt problem. The newly announced Government Mortgage Help Plan is said to target two groups of the mortgage victims. Borrowers that owe more on their mortgages than their houses are worth are expected to benefit from the plan. As reported by Moody's Analytics, 15 million+ house owners fall under this category. Among them, around 10 million owe a minimum of 20% more than their household's market price. As per the plan, their mortgage companies (first-time lenders) get financial incentives so that they can cut the total amount the borrowers have to pay. Those that are still on their mortgages can refinance loans backed by the Federal Housing Administration (FHA).

If you are looking to reduce your monthly mortgage payments, you can consider refinancing your home loan to a lower interest rate or from an adjustable-rate into a fixed rate loan by learning more about Bank of America refinanance mortgage programs. Bank of America offers good refinancing programs to suit your needs. Furthermore, the bank also has good rates and excellent customer service. The bank takes good care of its returning clients so if you are searching for a mortgage or a refinancing scheme, you may do well to sign up with this bank. So, how do you know if you qualify for refinancing? Well, you can refinance your mortgage if you have already built up at least 10% of the equity of your home. After all, refinancing means you are cashing out on the equity of your home. That's why you need to have at least 10% of equity before you can refinance your mortgage. Also, most banks will look at your home equity before considering your application for refinancing. This is because the lender wants to use your home equity as collateral for the loan. You will also need to be current on your home loan payments and not defaulting in the payments.