Many people want to know if there are benefits for those who do not get behind on payments. Basic criteria is outlined in the paragraphs below.

Under the Homeowners Affordability and Stability Plan some borrowers who are actually current on their mortgage can qualify. Refinancing through Freddie Mac and Fannie Mae. If you owe more than your property is worth-eligible loans can qualify for up to 105% of current market value. Values to be determined after you apply for refinancing.

There will be criteria to meet to be eligible including sufficient income and stable payment history on the mortgage. Second mortgages will not be considered under this program. In those cases, the holder of the second will need to stay in second mortgage position. Refinancing will not reduce the amount you currently owe on your home.

There are also cash incentives to borrowers to stay current on a mortgage. In many cases the borrower can receive up to $1000 each year for five years in principal reduction applied directly to the loan. You must stay current. See your mortgage lender for details.

If you choose to apply for the refinance you may want to prepare yourself by obtaining the following: Information on gross monthly income ( pay check stubs, etc.), a copy of your most recent tax return, any second mortgage information, any credit card payments and balances, and payments on any other loans that may affect a decision by the lender. This will expedite any decision the lender makes.

Letters are being sent out by the lenders to many homeowners explaining how this works. The refinancing plan may not work for everyone that applies, but it is up to the borrower to make that determination. There are no fees involved in this refinance option. If you do not get a letter and think you qualify for the reduced rate contact your lender to make a mortgage rate application.