Is 2010 the right time to opt for a mortgage refinance?

If you are finding it hard to make payments towards your mortgage loan, you can opt for a mortgage refinance. Refinancing gives you a unique opportunity to save money, reduce monthly expenditures and save your home from getting foreclosed.
With the new refinanced loan, you can have the modes of repayment on your mortgage readjusted. You can negotiate with your lender to alter the terms and conditions of your loan. You can shorten the loan term, have a lower interest rate, renegotiate on the principal amount or can convert your fixed rate mortgage to an adjustable-rate mortgage or vice versa.
New features in refinancing in 2010
To help the home buyers who are facing hardship with their repayment, Obama has introduced a new mortgage refinancing and modification plan, known as Obama’s Stimulus Plan, which will help borrowers, by lowering their monthly payments and saving their homes from foreclosure.
The mortgage rate for a 30-year fixed rate will range between 4.75%-5.25%. The lenders cannot charge borrowers for a Rate and Term refinance. If some lenders are charging points, their rates will be minimal. The program is going to expire on June 10, 2010. You have to complete your refinance transaction on or before that date. However, you will not be able to opt to refinance your second mortgage and also cannot opt for cash out refinance.
Eligibility criteria
To get your mortgage refinance application approved, you need to have the following criteria:
• Your existing mortgage should not be higher than 105% (and in certain cases 110%), of current market value of your property.
• Due to general economic conditions in the housing market, your property has lost its value.
• You must be employed and have not become self-employed in the last 2 years.
• You need to prove that you have suffered a loss in your income, due to some valid cause.
• Opting for a refinance will be profitable for you, in terms of lower monthly payments.
Benefits of the new refinance plan
Some benefits of the plan are as follows:
• You will get lower mortgage rates
• You will not have to pay towards closing costs
• You will have affordable monthly payments
• Qualification criteria to get approved for the loan is also easy
You should shop around to get the rates from different lenders. As interest rates are lower than that of the previous years, this is the right time to opt for a mortgage refinance and save your money.

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