It's been rumored, and confirmed via President Obama's speech, that there is a new refinance loan program in the works for borrowers who are under water in their current mortgages. The government did come out with a program a couple of years ago called DU Refi Plus, which enabled borrowers to finance up to 125% of their home's value, however lender overlays and pricing hit's for the high balance, made it near impossible to make these loan's make sense. So the latest news is that the government will sponsor a "No Loan To Value" restriction on refinancing. What this means is that if your LTV is 175%, it does not matter. You can still refinance at the lower rates offered today... FHA has a similar program that has been in place for years. It's called the 203K Streamline refinance loan, and there is no appraisal required. When rates hit bottom 2 years ago, it sparked a huge refinance boom that enabled FHA borrowers upside down in their homes to refinance at lower rates, making their housing payments more affordable. However there is nothing like that on the conventional side. If the Government does sponsor a no LTV restriction loan, you will be able to refinance at today's lower rates and potentially save hundreds on your current mortgage payment... This will be a great loan product, however understand it will probably be for those with good credit with no late payments on their mortgage. Being that over 70% of the loans originated in 2004 to 2006 were conventional loans, this will be great news for many Americans who have maintained their good credit ratings, but are stuck in their higher interest loans. When the program details are revealed, be prepared for longer than normal processing and turn times because of the large volume of applications being thrown at the lenders... WilliamAcres.com