If you are not aware of this program that is available, you need to know. This program is designed to help borrowers who have a originally had a 1st mortgage with at least 20% equity and have had a decline in their home values.
An example would be as follows: you originally purchased your home for $200k and obtained a 1st mortgage for $160k which would be 80% loan to value, but now the value of your home has fallen to $180k. You could still refinance but in order to obtain a mortgage this scenario would require Private Mortgage Insurance. Th Home Affordable Program is designed for this scenario, as long as your current mortgage is a Fannie Mae or Freddie Mac loan you can obtain the going rate with no PMI.
The program will also allow you to obtain the going rate with no PMI if you have a 2nd mortgage as well. As long as your current 1st mortgage originally had no PMI you can have the current 2nd subordinated to stay in 2nd lien position and take advantage of the lower rates.
Due to the loss of home prices over the past 2 years and increasing foreclosure problem this program was designed to help the borrower who simply wants to take advantage of the lower rates but otherwise would not be able to do so. If you are wondering if you are a candidate for this program all you have to do is contact your mortgage professional and give your address and you can find out in minutes if you qualify.
Rates are still at an all time low and if you have been hesitant about the thought of refinancing due to a loss of home value, this program may be able to help you lower your rate and monthly payment. Consult your mortgage professional today.
Posted by Randy Ratchford Partner/ Mortgage Planner with Horizon Financial, Inc. Randy can be reached toll free 877-627-9211 ext107 or email RRatchford@HorizonFinancial.org
