Home mortgage How to get started
But many homeowners have been affected by drops in home values, which have left them holding less equity in their homes. With the housing plan, Fannie Mae and Freddie Mac mortgage holders can refinance with equity levels below what many banks currently require. A homeowner with a mortgage loan not backed by those institutions might instead be able to modify the loan. For consumers who qualify, monthly mortgage payments will be decreased to 31 percent of gross income. The mortgage payment would maintain those modified terms for five years, then will slowly be raised again.