(NAPSI)-There's good news for homeowners who are looking to take advantage of today's historically low mortgage rates.
A new program called Making Home Affordable is part of the Obama administration's comprehensive strategy to get the housing market back on track.
It's projected that through the program up to 9 million American families may be eligible to refinance or modify their loans to a payment that is more affordable, both now and into the future.
Here are some questions about the program's refinancing initiative and answers, courtesy of mortgage investor Freddie Mac:
Q: I'm current on my mortgage. Will the program's refinancing initiative help me?
A: Eligible borrowers who are current on their mortgages but have been unable to take advantage of today's lower interest rates because their homes have decreased in value may now have the opportunity to refinance. Through the program, mortgage loans that are owned or guaranteed by Fannie Mae or Freddie Mac may be eligible for refinancing. Your mortgage company can tell you who owns your loan or you can look up your loan online at www.MakingHomeAffordable.gov.
Q: How do I know if the refinance will improve the long-term affordability or stability of my loan?
A: Your lender will give you a "Good Faith Estimate" that includes your new interest rate, mortgage payment and the amount you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, refinancing may not be right for you.
Also, consider that refinancing from an adjustable-rate to a fixed-rate loan or eliminating higher-risk loan terms, such as interest-only payments or balloon payments, may also provide long-term stability.
Q: What are the interest rates and terms of this refinance offer?
A: The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by the lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans will have no prepayment penalties or balloon payments.
Freddie Mac's mission is to provide liquidity, stability and affordability to the housing market. It does this by making sure that financial institutions have mortgage money to lend and making it easier for consumers to afford a decent house or apartment.