A thirty year fixed home mortgage refinance is currently priced from 4.750% and 5.250% charging the borrower minimal or no points for a no cash out refinance. The rates shift daily for home mortgages depending on economic conditions, but haven't changed much from this range since April 2009.

Each mortgage company has the choice to offer their current borrowers a government stimulus refinance plan from the U.S. Dept of Treasury called the "Making Home Affordable" Plan. This home mortgage loan plan allows home mortgage refinance with property valuation from the bank's automated valuation process and also allows loan approval with a higher debt to income ratio than normally allowed.

The stimulus refinance program refers to the refinance of 30/20/15/10 year fixed mortgages. Some lenders added the 5/7/10 year ARMs.

This plan is beneficial to borrowers who have undergone the loss of a percentage of their earnings and/or devaluation of their home due to general economic conditions. This product offers aid to homeowners who have fallen past due in their monthly house payments.

What the Plan Will Not Allow:

The automated appraised value cannot show the property value over 105% of the current loan amount, 110% in certain cases.

The borrower must be employed and cannot have become business owners in the last twenty four months.

The refinance must show an advantage to the property owner by lowering interest rate and payment or taking the customer from an adjustable rate mortgage or pay option ARM to a fixed plan.

*Also note the plan will not allow a borrower to refinance home equity lines of credit. Second mortgages are subordinated to allow the refinance to proceed.

When refinancing your mortgage, requesting your current bank's version of the "Making Home Affordable" package should be enough to let your bank know the specific program you're interesting in exploring.

The stimulus refinance package pertains to the refinance of 30/20/15/10 year fixed mortgages. Some lenders added the 5/7/10 year ARMs. The mortgage plan is basically a streamline refinance, but with the added advantage of no appraisal. In this financial atmosphere of declining market values and rampant job losses, it allows a lower monthly payment and a savings every month..

Government VA and FHA home loans still allow the Interest Rate Reduction Loans with no appraisal except under certain circumstances. Borrowers presently in an FHA or VA loan should use this option as the stimulus plan cannot make the change from a government loan to a conventional conforming program. Government loan rates are about the same as conventional conforming rates. Both translate to substantial savings every month for most refinanced mortgages with rates around 5% from a median 6.5% a year ago.

Buying down the rate will allow an even lower rate, but a homeowner should plan to remain in the house long enough to recoup the cost of the buydown. Each point represents 1% of the loan amount. The costs to close the loan may be rolled into the loan and refinanced as well so that no out of pocket expense will be incurred by the homeowner.

Rates for loans less than a 30 year term are not as low. It appears mortgage companies are more interested in locking in a long term property owner than short term ones. 3, 5 and 7 year adjustable rate mortgage loans give no measurable break in interest rate from a 30 year fixed. It is thought a homeowner set up their home mortgage refinance on a 30 year term, but make the monthly payment based on the payment for the term they wish.

Contact your current lender for information specific to your mortgage loan.

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