Although the homes in Logan, Utah, Cache Valley and surrounding areas haven't depreciated as much as most of the nation (see California and Florida!) I think most real estate agents would agree with me that most every home has depreciated a little. One of the consequences of this depreciation is that it has made it difficult for some borrowers to refinance.
A borrower might have amazing credit and stable employment but if they have lost much of the equity that they once had in their home it can make it difficult for them to refinance, because the bank uses the home as collateral for the loan. However, there is hope with a program that the government has sponsored called "Making Home Affordable" or the Fannie Mae and Freddie Mac Relief Refinance Program.
This program works just like a conventional loan program except it allows for borrowers to refinance even if they have lost all the equity that they had in their homes, up to 105% LTV. This is great news for borrowers that want to take advantage of the lower interest rates right now.
To be eligible for this program...
1. Your current mortgage must be owned by Freddie Mac or Fannie Mae. Find out here!
2. Your loan can't currently have mortgage insurance.
3. The balance on your mortgage can't be more than 105% of the value of your home.
My company is currently originating a lot of loans with this loan program. If you live in Logan, Utah, Cache Valley, or surrounding areas and your current loan is serviced by Bank of America, Wells Fargo, Flagstar, Chase, or Citimortgage, there is a good chance that I can help you refinance to get a lower rate. Give me a call today at 435-755-2177 for a free consultation.
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