Illinois 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 means that people all over Illinois can now refinance their home even if they owe more than it is worth — up to 125% of the home’s value. By allowing people in Illinois to refinance under the Obama refinance program (aka Making Home Affordable program) it is one more sign that the Obama administration is doing all they can to help prevent foreclosures right here in Illinois.

Right here in Illinois, this change is expected to help thousands of people who currently owe more than 105% of their home’s value to refinance to lower rates. Before rates go up again, it is expected that many people here in Illinois will rush to get their refinance applications in.

According to a story at Bloomberg:

The decision to change the allowable ratio is part of an effort to “adapt to an ever-changing housing market,” Treasury Secretary Timothy Geithner said in the HUD statement. “By expanding refinance eligibility, we can bring relief to more struggling homeowners more quickly.”

What This Means For Homeowners In Illinois

It is somewhat unclear exactly how much of an impact this expansion will have across the nation – but here in Illinois and in many other states — many, many people owe more than 105% of their home’s value, and this expansion will help. To find out if you qualify under the recent Obama refinance guideline changes, be sure to contact your local Illinois mortgage expert today.