Sub-Prime Mortgage Holders Get Relief

The Bush Administration reached an agreement with the mortgage bankers association allowing certain sub-prime mortgage holders to apply to have their adjustable rate mortgage fixed for up to an additional 5 years, or until the real estate market improves, allowing the homeowner the ability to refinance to a lower fixed-rate mortgage.

The interest rate freeze will be available only to homeowners who have not fallen behind on their current, lower-rate mortgages. It is only available to primary-residence homes. Investment properties and possibly second homes are excluded from this rate freeze. If you can afford the higher payment resulting from the increase in interest rate, you will also be excluded.

To find out if you qualify, the administration has setup a hotline for you to call: 1-888-995-HOPE.