Pennsylvania Obama Refinance To 125% Announced

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 is great news to many homeowners in Pennsylvania because now they can refinance up to 125% of the homes value where the prior limit under the Obama Refinance Plan was 105%. The change from 105% to 125% in the Making Home Affordable plan is just another step that the Obama administration is taking to help prevent foreclosures across America.

Both right here in Pennsylvania as well as all over the US, there will now be thousands of people who currently owe more than 105% of their home’s value take advantage of lower rates while they are available. Now, people all across Pennsylvania will be rushing to refinance while rates are low.

According to the story reported in CNN:

“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.

A story at Bloomberg said:

A drop in values has left about 20.4 million of the U.S.’s 93 million houses, condos and co-ops with mortgages higher than the properties are worth as of March 31, Seattle-based real estate data service Zillow.com said in a report May 6.

What This Means For Homeowners In Pennsylvania

While it is difficult to tell exactly how many people in Pennsylvania will benefit from this change, there are surely many people right here in Pennsylvania who will now be able to refinance, where prior to today’s announcement they were locked out. The best way to find out if you qualify under the new Obama refinance rules is to contact your local loan officer in Pennsylvania and ask them – or contact us for more information.