Home loans, a review of the topic
The biggest hurdle for applicants in the areas of the country where values have dropped the most is having enough equity. Part of the new stimulus plan introduced by the Obama administration is designed to help those who keep up with their mortgage payments, but whose home values have dropped so much that they now have little or no equity. Consumers who are under water with the mortgage, however, will not qualify to refinance with the program. Those who have at least 5 percent equity in their homes will qualify. Many who are considering refinancing a home mortgage are waiting to see if the rates drop below 5 percent.