Financing in Mountain View>Question Details

Brian, Other/Just Looking in Mountain View, CA

Wondering about the making home affordable refinance program

Asked by Brian, Mountain View, CA Wed Mar 11, 2009

My fiancee and I purchased a 2/2 condo in Mountain View in 2006 with 22% down using a 7 year interest only loan. SInce then, the value has obviously decreased, and we are certainly above the 80% loan to value ratio required by many lenders for refinancing. We would like to refinance into a 30 yr fixed mortgage under the Obama administration's making home affordable refinance program. I contacted our lender, and we were approved for a conventional 30 yr fixed loan at 5.125%, but in the underwriting process, the private mortgage insurance company declined the application because CA is labeled as a declining market and the property is a condo. They then offered us an FHA loan which would have added 5% to the prinicipal and increased the monthly payment 200 dollars per month over what the 30 yr fixed 5.125% loan would've been. I am wondering whether everyone using the Obama refinancing plan is going to have to use an FHA loan and pay mortgage insurance or whether we have other options

Help the community by answering this question:


The making home affordable refinance program has changed a lot since 2009. Now there is no limit to how far upside down a borrower can be so regardless of LTV you can refinance with any lender you choose. You can review all the details on our website at
0 votes Thank Flag Link Sun May 13, 2012
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