Looking to refinance to a lower interest rate and seeing if there are options available...

Asked by Help..., Ventura, CA Thu Aug 27, 2009

Owe about 585K on loans (510K interest only and 75K on second interest only loan). With the current market looking to see if there are lenders willing to refinance under the Home Stability/Affordability or any other way. Current income is about 130K/yearly and credit scores are very high. Any info helps...

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6
Barbara Van…, , Folsom, CA
Thu Aug 27, 2009
Hello Homeowner ~

Since the "Making Home Affordable" refinance program is for Fannie Mae & Freddie Mac owned mortgages, your first step will be to determine if they own your mortgage. The process is easy so go each website below and answer a few questions. You will get an answer immediately.

http://loanlookup.fanniemae.com/loanlookup/
https://ww3.freddiemac.com/corporate/

If either one owns your mortgage, you may be able to refinance even though you are upside down. The current Making Home Affordable guidelines allows a homeowner to refinance up to 105% of their home's value. This LTV is increasing to 125% effective September 19th when Fannie and Freddie update their underwriting systems. Applying the 125% factor to your estimated value of $500K means you could refinance debt up to $625K. Sounds good so far right? The big hurdle is "who owns your mortgage". This program does not apply to other investor owned mortgages... only Fannie and Freddie.

Sounds like you don't have your mortgages under management otherwise you would have already known about this. I offer my clients this FREE service so they always know where they stand in terms of the latest real estate finance news and have a personal mortgage advisor whenever they need it. Send me an email at http://www.Barbara@VanDuynGroup.com if you would like your mortgages under management.

To Your Success,

Barbara
http://www.BarbaraVanDuyn.com
1 vote
Michael Hump…, , Winchester, VA
Mon Aug 31, 2009
unfortunately if your loan is not owned by freddie or fannie you are out of luck. Check your arm and see what it could adjust to. I know alot of people right now are actually adjusting down. As always contact your lending they may be willing to lock the rate for a longer period of time rather then have another house go into foreclosure. No matter what your payment will be going up, the time has come to start paying principal along with the interest
0 votes
Barbara Van…, , Folsom, CA
Fri Aug 28, 2009
The only other loan program that allows a homeowner to refinance even if they are upside down is FHA. The homeowner must already have an FHA mortgage and can refi into another FHA (Streamline Mortgage) without an appraisal as long as it reduces their mortgage payment (lower interest rate) or loan term.

Let's take a couple steps back and get a little more information. If you have ARM mortgages that will be resetting, it's very possible they will reset to lower interest rates. So let's find out more about your's. Pull out both Promissory Notes and look for the following:

1. What is the index? If the index is LIBOR, check to see if its based on the 1 year, 6 month or 1
month LIBOR index.

2. Find the margin

3. Identify when the note is schedule to reset

Come back with the information and lets continue this conversation. You may not need to worry about a refinance afterall.

Barbara
0 votes
Help..., , Ventura, CA
Fri Aug 28, 2009
Actually I have searched and our loans are not owned by Freddie Mae or Freddie Mac. Which brings me to my dilemma...is there any other options at this point?
0 votes
Help..., , Ventura, CA
Thu Aug 27, 2009
Unfortunately we're upside down home worth about 500K at this point. Current loan rates are 6.75 and 9%
0 votes
Kyle, , Scottsdale, AZ
Thu Aug 27, 2009
What is your home worth approx and what is your currect loan rates? I would need to know that to give you a quote....
0 votes
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