A thirty year fixed home mortgage refinance is currently priced from 4.750% and 5.250% charging the home owner minimal or no points for a Rate and Term refinance. The refinance rates change daily for home mortgages depending on economic conditions, but haven't changed much from this range since last year.

Each bank has the choice to offer their service portfolio a government stimulus refinance plan from the United States Dept of Treasury called the "Making Home Affordable" Plan. This home mortgage loan program allows home mortgage refinance with property valuation from the bank's automated valuation process and also allows underwriting guidelines with a higher debt to income ratio than traditionally 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 approach is beneficial to property owners who have suffered the loss of a percent of their earnings and/or devaluation of their home due to general financial conditions. This program offers aid to property owners who have gone delinquent in their monthly mortgage payments.

What the Plan Will Not Allow:

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

The homeowner must have a job and cannot have become self-employed in the last 24 months.

The refinance must show a benefit to the homeowner by dropping interest rate percent and monthly payment or taking the customer from an adjustable rate mortgage or pay option ARM to a fixed plan.

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

When refinancing your mortgage, requesting your current mortgage company's version of the "Making Home Affordable" plan should be enough to let your mortgage company 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 adjustable rate mortgages. The mortgage loan is basically a streamline refinance, but with the added advantage of no appraisal. In this economic atmosphere of declining market values and rampant employment losses, it allows a lower monthly mortgage payment and a substantial monthly savings.

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 because the stimulus plan cannot make the change from a government loan to a conventional conforming program. FHA and VA 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 monthly payment, but a borrower should plan to remain in the home long enough to recoup the cost of the buydown. Each point represents 1% of the loan amount. The closing costs 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 lenders are more interested in locking in a long term customer than short term ones. 3, 5 and 7 year ARM loans give no measurable break in interest rate from a 30 year fixed. It is thought a borrower 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 banker for information specific to your mortgage loan.