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

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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 http://www.finance1online.com
0 votes Thank Flag Link Sun May 13, 2012
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