4 to 5 million homeowners in owner-occupied borrowers with conforming Fannie Mae or Freddie Mac loans?? are going to be receiving help from The Obama Administration.????The new program will help to refinance up to 105 percent of the current market value of their properties.
That plan is to help homeowners refinance thier homes when they would not be able to get a refinance through traditional routes because of falling home values.
Homeowners seeking to refinance are generally limited to a loan amount of less than 80 percent of the appraised value. But because home values have dropped, many homeowners are unable to refinance and take advantage of historically low mortgage rates.
Consider a couple who purchased a home a few years ago for $260,000. They took out a $208,000 mortgage loan at 6.5% for 30 years. Today, they owe $200,000 on the loan. However, if the home values in their neighborhood have dropped 15%, their property may currently only be worth $221,000. If a lender requires an 80% loan-to-value ratio for a refinance, the borrowers could only finance $176,800, even though they owe $200,000. Yet, if the couple could avail themselves of the current going interest rate of, let's say, 5 percent, they could save roughly $2,400 per year in mortgage payments.
Fannie Mae and Freddie Mac are opening door for homeowners in similar situations to borrow up to 105% of hte home's appraised value to help take advantage of the historically low rates.
Fannie Mae and Freddie Mac are issuing guidelines to originating lenders that will allow them to begin offering the Home Affordable Refinance immediately. The Home Affordable Refinance will expire on December 31, 2012.
The eligibility requirements for a Home Affordable Refinance is as follows:
??? Current loan is owned or guaranteed by Fannie Mae or Freddie Mac
??? Owner occupied, one-to-four unit home;
??? Maximum refinance loan amount is 105% of the current market value of the property;
??? Borrower must have sufficient income to support the new mortgage debt; and
??? Borrower must have an acceptable mortgage payment history.
??HouseRebate.com, a member of the National Association of Realtors??, is a full-service value real estate company that maintains a seasoned staff of agents. They provide all the services that traditional real estate offices offer at discount prices, with reduced commissions on sale, and rebates of 33 percent on commissions of purchases. HouseRebate.com features a virtual foreclosure tour bus that shows currently available San Diego foreclosure properties.
Google+
