Refinancing Could Be Easier Than You Think
Posted On: June 14th, 2010 by James Posted In: Mortgage Programs • Mortgage Rates • Refinancing
With interest rates absolutely plummeting and apparently staying low for some time here, I really want to get a message out to the huge contingent of people who feel like they WON’T qualify for a mortgage, or a refinance. I have had many conversations with clients in recent weeks who seem to be in disbelief that they should refinance. Perhaps they just refi’d a year or so ago, and don’t want to take on another load of closing costs.
For borrowers who find themselves in this position, I only suggest a “no-closing cost mortgage refinance”. This will potentially get them a lower rate without any upfront costs, and put them in an immediate cash flow win.
The next problem borrowers are having trouble convincing themselves us is one of appraised value. “What if my house doesn’t appraise?” is a valid concern, and is a legitimate issue facing many homeowners. This can sometimes be the reason why a refinance wouldn’t work. But there are new loan programs, sponsored by early 2009 stimulus law, that can address THIS issue as well. If your current loan is backed by either Freddie mac, or Fannie Mae there are some new options for a rate and term refinance that allow what is owed to be up to 105% of the appraised value. One of these programs is called “the Fannie Mae DU Refi Plus” aka: the HAMP/Home Affordable Mortgage Program, the other is called the Freddie Mac Open Access Loan. Also, there are some FHA streamline options for current FHA loan holders who need to avoid an appraisal altogether.
I encourage you to contact me, and find out if one of these programs could be the answer for you in benefiting from the current mortgage marketplace.
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