Well, we've been waiting quite a while since the announcement was made that eligible homeowners could refinance their home loan under the Making Home Affordable Program borrowing up to 125% of their home's current market value vs. the previously established 105%.
More lenders are now making this program available, giving a company like mine who is a mortgage banker AND a mortgage broker the opportunity to shop rates with many different banks/lenders for homeowners who could benefit from refinancing their home loan in order to obtain today's low interest rates. This may help offset some of the further value declines some markets have experienced. Also, many families who have "interim fixed" programs or "interest only" home loans were going to see payment increases by refinancing, and chose to hold off, but then could not refinance because of further value declines if they are in areas hard hit by high foreclosure rates.
There are many people who have home equity lines of credit on their homes. These loans have interest only payments and will one day go in to fully amortized repayment. Unfortunately, second mortgage may not be rolled in to the Home Affordable Refinance Program. But, with enough savings on refinancing their first mortgage, they'll be able to chunk down on those home equity loan/line of credit balances now, so when the payment "reset" comes it will be less of an increase.
Interest rates have been very low of late. If you have been considering refinancing, but could not due to the market value of your home, you might want to consider looking in to the possibility again. This won't help you if the reason you could not refinance was due to credit/income issues or because your existing loan is not eligible for the Home Affordable Refinance program, but could definitely help if the reason was related to your home's current market value.
If you have an adjustable rate/interest only mortgage, or a fixed rate loan with a current interest rate of 5.75% or higher, and you plan to remain in your home long enough to benefit from refinancing, call/e-mail today.
See you at the closing table!
Karen Cooper - OR|CA Mortgage Consultant - www.Quality4Loans.com
Providing high Quality, Professional, Ethical service to Oregon and California home buyers and owners since 1983. Whether you are taking out your first home loan or your fiftieth, for your home, your second home or for investment, put my knowledge and expertise to work for you.
;)
;)
Karen - Been getting notices on my lenders starting to offer this now. FINALLY! I'm hoping to help a couple of people out with this new guideline in place now.