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Mortgage Refinance To 125% Of Value

Posted by  on Jul 20, 2009
 

Fannie Mae and Freddie Mac Will Offer 125% Mortgages

If you need to refinance, and your home has lost significant value, more help is on the way. If your current mortgage is owned by either Fannie Mae or Freddie Mac, you will be eligible to apply for a 125% mortgage refinance. Find out if your current mortgage is owned by Fannie Mae by going to their loan look-up site. Find out if your current mortgage is owned by Freddit Mac by going to their my mortgage site.

Qualifying For A 125% Mortgage Refinance

If your loan is owned by Fannie Mae or Freddie Mac, you can move to the next step. You must be current on your payments and you must have sufficient income to qualify for the new monthly mortgage payments. There are other factors used to fully qualify you for a new mortgage. If you want to refinance and think you might be eligible for this new 125% mortgage refinance program, you can find the lowest mortgage rates here.

20 Million Americans Need Help With Their Mortgages

July 1, 2009 "Obama widens mortgage refi program" According to Tami Luhby, senior writer for CNNmoney.com "More than one in five borrowers are now underwater, with homes in parts of California and Florida losing more than 50% of their value, according to Zillow.com, a real estate Web site. Some 20 million people own homes worth less than their mortgages."

More help was needed. The 105% refinance program was not enough. Even fiscally responsible people have been put in a bad spot. For example: If you bought a home in CA for $400,000 putting 20% down payment. Your loan would be $320,000. If the value has gone down 25% since the purchase, the new loan to value ratio would be greater than 105%. In this scenario, the homeowner could not refiance. In many areas of the country values have declined greater than 25%. The Homa Affordable Refinance Program (HARP) needed to be expanded.

www.makinghomeaffordable.gov

 

 

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