The federal making home affordable program had two sub-parts namely the home loan mortgage refinance program and the home affordable modification program. The federal mortgage refinance option was meant for those homeowners who wanted to take advantage of the drop in the interest rates in the housing market and utilize the equity in their homes to pay off high interest debts and other liabilities. Homeowners who could not qualify for refinance mortgage help were given the opportunity of lowering their mortgage loan repayments by opting for home affordable modification program.

Homeowners who were current on their mortgage loan payments and had their mortgage loan insured from Fannie Mae or Freddie Mac could easily qualify for the home loan mortgage refinance plans. However, the mortgage refinance rates applicable on different home affordable refinance plans differed as it depended on the homeowner’s financial and personal background and other details like how much the homeowner can afford to pay on the federal mortgage refinance loan, whether the homeowner has negative or positive equity in their homes, what is the credit history of the homeowner and so on.

Refinance mortgage help was provided as a part of the federal making home affordable program wherein homeowners were given the opportunity of lowering the monthly payments on the mortgage loan and also utilizing excess equity to convert it into cash and utilize it for other equally important investments or to consolidate debts and pay off liabilities. Home loan mortgage refinance is also beneficial for those homeowners who are current on their home loan payments but owe more on the mortgage that their home is worth. There can be numerous reasons why a homeowner would want to opt for federal mortgage refinance loans but the main purpose would be to avoid foreclosure or bankruptcy.