You can click on the title to link to a PDF long version of what we will highlight here for you. Many of you have been hearing about the Mortgage Bailout. You know our thoughts about this (we don't like it, in principal). For those of you who are not in default, however, you may be able to reap some of the reward from that.
Let us start here, what is the difference between a mortgage modification (mod) and what we are describing below? A mod is for people who are currently in default on their loan, and can only be done by the actual lender who holds the loan. So, for example, we cannot do mods because we are not the lien holder. You would have to work directly with the lender.
The Home Affordable Refinance is for those who are current, but can't refi for some reason. Here are the things to know about this:
1. You can borrow up to 105% LTV.
2. If your existing loan does not have MI, but the new loan would take you over 80% requiring MI, then you would not have MI on the new loan either.
3. You cannot combine a first and second mortgage in the refi. This sucks, frankly, because it is difficult to get some second lien holders to subordinate right now. So you could be out of luck if this is the case.
4. Your existing mortgage must be owned by Fannie Mae. You can call 1-800-7FANNIE to determine this. You can also contact your lender because they will know. You can also email Fannie at resource_center@faniemae.com.
5. You cannot take cash out on these refis.
6. You may, however, finance closing costs in the new loan.
7. To qualify you loan must have closed on or before February 28, 2009.
8. If you did a lender paid MI loan then you would not qualify for this loan.
9. You can add a borrower to the loan, if you needed to. But you cannot remove one.
This is the guts of this refi, called DU Refi Plus. Call us with questions about this and we will walk you through it. 505-830-9685.
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