REFINANCING The Obama Administration unveiled it's details of it's "Making Home Affordable Program" which is designed to help American Families refinance or modify their loans to a payment that is affordable now and into the future. One of the initiatives of this program is to help responsible homeowners "refinance" their loans to take advantage of the current low interest rates. Here are some Questions and answers about the Refinancing Initiative Program. Who is eligible? You may be eligible if: - You own and currently occupy a 1-4 unit home.
- Your mortgage is owned or controlled by Fannie Mae or Freddie Mac.
- You are current on your mortgage payments.
- The amount that you owe on your first mortgage is about the same or slightly less than the current value of your house.
- You have a stable income to support the new payments.
How do I know if my loan is owned by Freddie Mae or Freddie Mac? - Check with your lender or contact me and I will refer you to a mortgage specialist.
If I owe more than my property is worth. Do I still qualify to refinance under the "Making Home Affordable Program?" - Eligible loans include those where the first loans will not exceed 105% of the current market value of the property. The current value will be determined after you apply to refinance.
If I am delinquent on my mortgage, do I still qualify for the Refinance Initiative? - No, but you may qualify for the Modification Initiative, which I will cover later.
I have both a first and second mortgage do I still qualify? - As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible for the refinance.
Will refinancing lower my payments? - That depends. If your interest rate is much higher than the current market rate,you probably will, However, if you're paying interest only on your mortgage you may not see your payment go down. But, you will be able to avoid future mortgage increases and save a great deal over the life of the loan.
What are the terms of the refinance and what will the interest rate be? - All loans under the plan will have 15 or 30 year term with a fixed interest rate
- The interest rate will be base on market rates at the time of the refinance. Currentl interest rates are low, which makes this a good time to examine your refinancing option.
Will refinancing reduce the amount that I owe? - No, refinancing will not reduce the principle amout you owe. However, refinancing should save you money by reducing the amount of interest that you will repay over the life of the loan.
Can I get cash out? - No, Only transaction costs such as the cost of an appraisal or title report which may be included in the refinanced amount.
How do I apply for the refinace initiative? - Call or email me today and I will be happy to refer you to a mortgage specialist who will discuss your situatiuon and examine your options.
Here is some of the information that may be needed. - Recent pay stubs to help determine your gross (before tax) household income.
- Your most recent income tax return
- Information about any second mortgage on your house.
- Account balances and minimum monthly payments due on all your credit cards.
- Account balances and monthly payments on all other debts, such as student loans and car loans
LOAN MODIFICATION This initiative is aimed at helping struggling homeowners "modify" their loans to avoid foreclosure. Here are some common questions and answers about the modification Initiative program. Who is eligible? To apply for a Home Affordable Modification you must: - Own and occupy a 1-4 unit home
- Have an unpaid principle balance that is equal or less than $729,750 (one unit property).
- Have a loan that was originated before January 1,2009
- Have a mortgage payment (including taxes, insurance and homeowners association dues) that is more than 31% of your gross (pre-tax) monthly income.
- Have a mortgage payment that is no longer affordable, because of a significant change in income or expenses.
If you answered yes to all of these questions you may be eligible. Am I Eligible if I missed some mortgage payments? - Yes, if you missed two or more mortgage payment and answered "yes" to the modification initiative requirements above, you may be eligible.
Do I need to be behind on my Mortgage payments to be eligible for the Home Affordable Modification? - No, responsible borrowers who are struggling to remain current on their mortgage payments are eligible if they are at risk of imminent default. Examples of being "at risk" include facing a significant increase in your mortgage payment or a reduction in your income
I have a second mortgage am I still eligible? - Yes, but only the first mortgage is eligible.
I have a FHA loan. Can it be modified under this program? Are all loans eligible? - Most conventional loans including prime, sub-prime and adjustable loans, loans owned by Fannie Mae and Freddie Mac as well as private lenders and mortgage backed securities are eligible for a modification.
I have a mortgage on a Duplex. I live in on unit and rent the other. Will I still be eligible? - Yes, mortgages on 2,3,4 unit properties are eligible as long as you live in one unit as your primary residence
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