Many people who have recently been told they couldn’t refinance under the Obama Refinance plan because they owed more than 105% of the value, can now refinance up to 125% of the home’s value. Today, it was announced by HUD Secretary Shaun Donovan that people who owed more than 105% of what their home was worth could now refinance up to 125% of the home’s value. This expansion to the Making Home Affordable plan will help many people right here in Colorado and is another sign that the Obama administration is doing whatever they can to contain the foreclosure problem.

Not just for people living in Colorado, but for people all across the country who currently owe more than 105%, they now can take advantage of low interest rates and refinance. Many people in Colorado will now take advantage of the Obama 125% refinance and rush to refinance while rates are low.

According to CNN reporters:

“The president’s Making Home Affordable plan is already helping far more than any previous foreclosure initiative and with today’s announcement we will extend its reach still further,” said Donovan.

According to Bloomberg:

“I don’t think it’s going to have much of an impact because you still don’t have enough qualified borrowers,” Miller said, referring to today’s announcement. “It will help on the margin, but the issues with Obama’s plans is that they all focus on affordability and not principal writedowns and at some point they’re going to have to address” that, he said.

What This Announcement Means For People Living In Colorado

Estimates vary on exactly how many people here in Colorado will benefit from the expansion, but no matter the numbers here in Colorado, there will be many people nationwide who will also benefit. To find out if you qualify under the recent Obama refinance guideline changes, be sure to contact your local Colorado mortgage expert today.

New Obama Refinance to 125% In Colorado is a post from: Colorado Mortgage Team