updated 7/1/2009 1:45:29 PM ET 2009-07-01T17:45:29

The Obama administration is expanding a program to stave off foreclosure for borrowers who owe more than their homes are worth.

Housing secretary Shaun Donovan says borrowers who owe up to 25 percent more than their home's market value will qualify for government help refinancing their mortgages. The program currently is limited to borrowers who owe 5 percent more than their homes are worth.

The change addresses concerns that the initial terms excluded too many so-called 'underwater' borrowers.

The program is part of a broader effort to help at-risk homeowners. Another key component pays incentives for mortgage companies to lower borrowers' payments.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 2.78%
$30K home equity loan FICO 5.78%
$75K home equity loan FICO 4.54%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.57%
13.57%
Cash Back Cards 17.91%
17.91%
Rewards Cards 17.15%
17.15%
Source: Bankrate.com