The FHA short refinance plan helps people by providing them a more affordable plan with a lower mortgage payment. It helps people to decrease their mortgage balance to 97.5% of their present home value and will help them to reduce their principle balance and interest rates.

The homeowners should know that there is even other refinance program unlike, it's the Making Home Affordable Refinance Rates (HARP).

The FHA Refinance Program provides a chance to people to refinance their mortgage into a more affordable one and lower their mortgage payment. This plan is for all those who owe more on their mortgage than the value of their own home. Loansstore also provides services for this refinance plan; it helps all the struggling homeowners to refinance their mortgage.

The main aim of this FHA streamline plan is to assist all the distressed homeowners to lower their mortgage; this plan is very similar to the one put forward by George W. Bush. All the struggling homeowners would feel relieved from their debts after this plan.
How this plan would be useful for homeowners?

This FHA short refinance mortgage plan is useful to the upside down borrowers. Refinancing through this mortgage assistance plan will permit the homeowner to decrease their mortgage balance to 97.5% of the present home value. The lender has to reduce the balance by 10% and the government is providing incentives to all the lenders who eradicate the second mortgages or second liens like home equity loans.

This mortgage program will permit homeowners to reduce their principle balance and interest rates. Thus one can get a lower mortgage payments and more suitable payment terms.

This plan permits the homeowners to make home affordable by refinancing their mortgage to more affordable. This government mortgage assistance program has helped many borrowers till date by providing them a lower mortgage payment.