Saturday, April 25, 2009

What Do I Get For Paying My Mortgage On Time?

I hear it time and time again... consumers who may their mortgage on time consistently, but are feeling the pain of this market all the same. There is bailout after bailout for banks, insurance companies, and there's talk of loan modifications and debt forgiveness for those that are behind in their mortgage... but what about the rest of us that are doing the "right" thing?
Obama to the rescue!
Believe it or not, the Housing Affordability and Stabilization Plan (HASP) actually provides a little bit of something for you! Perhaps because of these changes you can refinance and take advantage of these unprecedented interest rates... maybe even if you're upside down. It's true.
If your loan is backed by Fannie Mae or Freddie Mac, you are eligible to do a refi under HAS. The maximum loan amount can be up to 105% of the current value of the home, and it can subordinate another loan. The real power here is that second part - it can subordinate another loan, and it works for investment properties, too!
Also, if your current loan is an FHA loan, then you can likely refinance with a Streamline FHA - regardless of your credit, debt to income ratio or even the ratio of your current property value to loan amount, so long as you've been paying your mortgage on time.
I encourage everyone to look at their current loan and decide if they should refinance. With the way the government is spending money, we are bound to see increases in the interest rate. And, when it starts, they are likely to rise quickly. So, take advantage of the options available to you. Make sure you're in a strong, fixed rate product at a comfortable level before the inevitable happens.
Interested in learning more? Contact me to register for a presentation by one of our strategic partners, Bank of America. Can't attend in person? Join us by phone! Email me to register.
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