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by Jace Stolfo
on Saturday, October 4th, 2008 at 4:09pm.
The HOPE for Homeowners program will help borrowers refinance mortgages who are having difficulty making their payments but can afford a new fixed rate, FHA insured loan. The program begins October 1, 2008 and ends September 30, 2011.
The program is voluntary for both the borrower and lender is and designed to lower payments so homeowners can keep their homes. The banks will write down the existing mortgage to 90% of the new appraised value of the home. A bank may choose to do this do avoid the costly foreclosure process. The borrower will have to pay the upfront mortgage insurance premium (3%) and the annual mortgage insurance premium (1.5%). The borrower will also share equity with FHA that was created at the beginning of this new mortgage and any future appreciation.
Some factors to determine borrower eligibility include: