Help Yourself and Help the U.S. Economy
If you have not refinanced your home loan since May of 2009, the rules got a lot easier (and it’s about time)!
Think about this; If one million homeowners who have not been able to refinance due to the value of their house could refinance to a lower rate and drop their mortgage payments on average of $200/month that would mean an extra $200 million dollars each month in the hands of American consumers. Probably one of the best economic stimulus plans that doesn’t increase government debt and isn’t a bailout of financial institutions!!
I wish this had been done 2 years ago but better late than never. My own belief is that this will help people lower their mortgage costs enough that a large percentage of people who have thought about giving up and letting their house “go” will not do so and it will mean less foreclosures in the country and particularly California.
One of the biggest obstacles to lowering your rate has been the declining real estate values. Although the final details are not yet published it appears that people who qualify and are current on their mortgage payment will be able to refinance to a lower rate without consideration for the home value…..no appraisal required in most situations.
Here’s what I know so far:
- Your loan is owned by Fannie Mae or Freddie Mac (I can help you figure that out)
- Your loan MUST be owned by Fannie Mae or Freddie Mac
- You have not refinanced your loan since May 2009
- You have not had more than 1 late payment over the last 12 months
- You don’t need to pay off a 2nd mortgage**
As far as we know, this new Refi Program can be used for your principal home or a rental home and possibly for a 2nd home.
We may be able to start taking applications as soon as mid November so gather some of your current statements together and then call me or email me.
The list includes:
- Your current mortgage statement
- Your current home owner insurance policy statement
- 2009 + 2010 federal tax returns and W-2’s
- Current pay stub(s)
- Current checking/savings/investment statements
** Even if you have a 2nd mortgage, you may be able to still refinance your current 1st mortgage as long as your 2nd lender will agree to “subordinate” to the new 1st loan. Most lenders will do that although they charge a fee to do that and they will require a review of your new loan information as part of their consideration to subordinate.
In order to refinance, your loan doesn’t have to be owned by Fannie Mae or Freddie Mac. But to refinance where you owe more than 80% of your value of your house and do that without an appraisal and have no mortgage insurance charged on your loan, this HARP extension is the only way to get that done.
You still might find it beneficial to refinance even if your loan isn’t part of that particular program so call me or email me if you have any questions.
If you have friends, co-workers, or family members that might be helped, I’m always happy to answer their questions.
