Are you among the millions of U.S. homeowners hit the hardest by the current financial crisis in America? Are you concerned that you can’t make your monthly mortgage payments anymore? If you’re nodding your head, you need to hurry to a financial counselor today and ask about home loan modification vs. FHA refinance.

Loan modification and FHA refinance are helping hundreds of thousands of homeowners prevent foreclosure when they can’t pay their mortgages. Which one is best for you depends mostly on who backs your loan. To learn about your loan insurer, call your lender and ask. Most loans are insured by the FHA, Freddie Mac, or Fannie Mae. None of these three organizations are actual lenders, but they insure the loans and guarantee the full amount of the loan. Doing this lessens the risk for lenders and helps borrowers get lower interest rates.

How can you tell apart an FHA loan and a Fannie or Freddie loan? From the outside, you really can’t. There isn’t much difference between the loans, aside from who happens to insure them. A lot of homeowners don’t even know who insures their loan, and that’s because they rarely need to know that information. When they do need it is when they want to modify their loan to decrease their monthly payments. If your loan is a Fannie or Freddie loan, then you could be eligible for President Obama’s Making Home Affordable mortgage loan modification plan. If you have got an FHA loan, then you should look into the HOPE for Homeowners plan, which is a special FHA plan to refinance mortgages through equity sharing.

Refinancing with HOPE for Homeowners with FHA loans opens up the possibility of refinancing to thousands of individuals who didn’t used to qualify under old refinancing laws. Decreasing house prices have caused a drop in the home equity that people hold, and that drop has made some unable to refinance traditionally. If they have lost enough equity that they no longer have 20% equity, they used to be unable to finance.

The Making Home Affordable plan, in contrast, is not a refinancing program. Instead, it is a loan modification program, which requires participating lenders to follow a standard procedure to lower homeowner’s monthly payments to affordable levels. The plan includes $75 billion of incentives paid out to both lenders and borrowers for successfully modified loans. Modifying loans prevents foreclosure and stabilizes the economy as a whole.

By: Lindsy Emery

Are you looking for ways to save money in this tough economy? One of the first places to look is your mortgage payments if you owned a home. And if your mortgage in an FHA mortgage you may be able to save money with a Refinance FHA Home Loan.

First, an FHA loan is a loan that guarantees your lender that in case you default on your payments, the loan will be taken over by the Federal Housing Administration. In other words, your loan is guaranteed to be repaid and the lender has undertaken less of a risk.

It is not a government loan and no taxpayers’ money goes to fund the loan repayment. It is fully funded by the mortgage insurance premiums paid by the borrowers. It was created by congress in 1934 to provide a stimulus to the housing construction business. In that time it has been able to insure over 34 million home mortgages.

For most people the purchase of a home is the single biggest investment that they will make during their lifetime. Investments are made monthly in the form of mortgage payments and the capital builds in the form of equity.

After a few years there is an appreciable return on the investment and there may be reasons to Refinance FHA Home Loan for things such as college tuition or even a vacation to get away from it all. If you are still in the home as your principal residence you may have the option to Refinance FHA Home Loan.

Refinancing FHA loans have become very popular in the last couple if years because it is easy to do and the interest rates are at decades low. You can get

One of the most popular ways to Refinance FHA Home Loan is through a procedure referred to as cash out refinancing. If you own a home that has appreciated and the principal from your monthly payments has been allowed to accumulate you may own a lot more home than your present mortgage indicates. You would then Refinance FHA Home Loan for the current value and possibly at a lower interest rate. Your old mortgage would be paid off and you would be left with the new one and a cash settlement in your pocket.

If your original home loan is an FHA loan and is in good standing, and you do not want cash back you may be able to qualify for FHA streamlined refinancing. The advantage here is that your monthly payment is reduced so that you have extra cash on a reoccurring basis. Your loan payment time may be extended but there is a chance your interest rates may drop. Check with your loan officer to see if you qualify for streamlined refinancing and if there would be an advantage to you to do this.

Refinancing FHA loans is one of the best options to reduce your mortgage payments. You can get more information by clicking the links below. The ease and the lower interest rates are certainly good reasons to check to see if you can lower your mortgage payments with a Refinance FHA Home Loan!

By: Al Hardy