U.S. Government is helping to finance low-cost mortgages?

Since February, the U.S. government is making efforts to give average Americans the possibility to refinance with rates near historic lows. New in March 2009, the owners thought it was very difficult to refinance the loan value of 95%. What's new government to build affordable homes program now available refinancing loan ratio low value of more than 100%. The scale that most creditors willing to accept 105%.

This is an opportunity to ride and relax. Who can resist funding under 4.9 per cent interest rate 100%? Well, now the problem is that the house on a value far below the expectations of owners. If a house purchased for $ 200,000 in 2006 and is ,mat $ 149,000, it is very unlikely that the current owner of the house must LTV, to something close to 105% necessary.

There is no way to deal with an increase in home value, not only directly. Many houses are more expensive woods, killing or short sales or close to it. This is very painful for the total cost of the house, but there is no place for training the owner. The best, the homeowners can do is get a proper assessment before they go through the process of refinancing. Some owners may be very surprised that the value of their homes plummeted in the past six month period.