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May 20, 2010 - Rates plummet as stock
market tumbles. Mortgage rates have decreased back below 5% again
for the first time in a number of months. Home buyers and refinancing
home owners get one more chance to lower their mortgage rates
and payments.
March 2, 2010 - Home buyers must have
contracts signed by April 30, 2010 for Home Buyer Tax Credit
- While home buyers need
to close on their purchase by June 30, valid contracts must be
in place by April 30, 2010. Any contract dated after that date
will not be eligible for the home buyer tax credit.
2010 Starts out with Race for the Home
Buyer Tax Credit - Home
buyers now have until April to sign a purchase contract and June
30 to close on their purchase and still qualify for the home
buyer tax credit. With great deals on short sales and foreclosures
and mortgage rates still relatively low, this spring may be the
best opportunity to buy a home in a generation.
Home Buyer Tax Credit Extended - November
4, 2009 - Great news
for home buyers: The home buyer tax credit has been extended
until April 2010 and the credit is now available to home buyers
who are selling an existing home. First time home buyers can
get up to a $8,000 credit and existing home owners can get a
credit up to $6,500 to buy a new home.
Fannie Mae and Freddie Mac Increase
HARP loan to values from 105% to 125% - August 6, 2009 - Responding to the need to help borrowers
who owe more than 105% of the value of their homes, the two mortgage
agencies recently announced that they will increase the limits
of the Home Affordable Refinance Program (HARP) from 105% to
125% loan to value. This step, just rolling out now, will extend
the program to possibly several million qualified borrowers whose
only impediment to refinancing has been the value decrease in
their homes.
Mortgage Lenders Begin Offering 105%
Refinance Program - June 30, 2009.
Mortgage lenders are finally beginning to offer 105% refinance
loans for both home owners and even for investor owned properties,
but the program is off to a slow start as lenders navigate the
underwriting details set up by Fannie Mae and Freddie Mac for
borrowers to qualify for this program. Interest rates, which
had spiked up earlier in the month, have started to level off
and fixed rates below 5% are available again.
105% Refinance Program Takes Off as
Freddie Mac Starts Their Relief Refinance Mortgage - May 12,
2009. Just as Fannie
Mae got the DU Refi Plus program off the ground to help homeowners
underwater with negative equity to refinance their mortgages,
Freddie Mac has followed with a similar program called the Relief
Refinance. For both programs, if the loan is owned by Fannie
Mae or Freddie Mac and there is no mortgage insurance on the
loan, then borrowers can refinance up to 105% of the current
value of their home including closing costs. Borrowers can not
pay off a second mortgage with either mortgage program but second
mortgages can be re-subordinated (see April 21 article below)
and the second mortgage can be any amount. Because the rules
are extremely complicated to determine if borrowers qualify,
MortgageAlmanac has set up a help request form and is offering
free pre-qualifications - just click Here.
Second Mortgage Lenders Urged to Work
With Borrowers Refinancing First Mortgages Under the 105% Refinance
Program - April 21, 2009.
The Obama Administration this past week urged second mortgage
lenders to allow borrowers refinancing their first mortgages
to resubordinate their second mortgage. A resubordination is
required whenever a borrower takes out a new first mortgage but
wants or needs to keep the existing second mortgage in place.
Traditionally, second mortgage lenders will allow resubordinations
but only if the borrower can show that they have equity in their
property. Many homeowners attempting to refinance under the new
105% refinance program also have second mortgages. The 105% refinance
program does not allow borrowers to combine a first and a second
mortgage, so many borrowers with second mortgages have to ask
permission of the second mortgage holder to resubordinate their
loan. MortgageAlmanac.com's free pre-qualification service can
help you determine if you need to resubordinate your second,
modify it or both. To get started, click here.
105% Refinance Program Rolls Out Today:
Submit Your Application Now- April 6, 2009.
The 105% refinance option for Fannie Mae loans was rolled out
today and borrowers can begin submitting applications. Borrowers
with a first mortgage owned by Fannie Mae can apply for the Fannie
Mae DU Refi Plus refinance loan program. Fixed rates are only
slightly higher than standard fixed rates, but the real benefit
to this program is the ability to refinance your first mortgage
up to 105% of your existing home's value without mortgage insurance
if you did not have mortgage insurance with your original loan.
This program has a lot of additional details but if you qualify
this program is a better option than a loan modification. Find
out for free if you qualify for the 105% Fannie Mae or Freddie
Mac refinance program by submitting your help request here.
105% Refinance Program: What About Mortgage
Insurance? - March 9, 2009.
If your rate is at 6% or higher and you want to refinance with
the new 105% refinance program down to 5%, you might think this
loan program will save you money. But it all depends on your
mortgage insurance situation. Loans through Fannie Mae and Freddie
Mac require mortgage insurance if your first mortgage is greater
than 80% of the value of your home (see our article: Facts
about Mortgage
Insurance).
Fortunately, this new 105% program has special exceptions for
refinancing homeowners. If you did not have mortgage insurance
when you originally purchased the property or last refinanced,
then you do not need to obtain this coverage for the 105% refinance
program. That is key because mortgage insurance payments have
skyrocketed in the past year to the point where it might actually
result in a higher monthly payment when you refinance
and add new mortgage insurance costs. For a free analysis to
determine if you qualify for the 105% refinance program and if
you will need mortgage insurance or not, click here.
Refinance or Modify? - March 6, 2009. The new Obama mortgage program gives
borrowers opportunities to either refinance through special Fannie
Mae or Freddie Mac programs or to modify their loans through
the new Housing Stability program. Not sure what is best for
your situation or what you can qualify for? For a free analysis
to determine the best program for your needs, click here.
Can you refinance if you owe more than
your home is worth with the new mortgage plan? - March 5, 2009. Fannie Mae and Freddie Mac have both
announced refinance loan programs designed to help borrowers
who are underwater with their mortgage. The new program allows
borrowers to refinance their first mortgage up to 105% of the
value of their home, and second mortgage loans can be any amount
on top of that. The announcement included exact details about
maximum loan to value, mortgage insurance requirements and income
documentation issues. To apply for one of these loans, borrowers
can go to any new lender directly or work with a mortgage broker.
The rules to qualify for this refinance program are complicated,
and many borrowers who do not qualify for this program may qualify
for a loan modification instead. For a free pre-qualification
to see if you qualify for this refinance program or for a modification,
click here
Loan Modification and Refinance Plan
Details Announced Today - March 4, 2009. The specific guidelines for helping home owners
to modify or refinance their loans were published today by the
Obama Administration. The big news is that the maximum loan amount
to qualify is $729,250. Also, specific rules for qualifying were
established. Borrowers also do not need to be in default to qualify.
Lenders will need several weeks to implement the plan, but borrowers
should get ready now. For a free pre-qualification to see if
you qualify for a loan modification, click here
Obama Administration Refinance Plan
Includes Help for Borrowers Who Are Current But Underwater -
March 2, 2009. In addition
to helping borrowers who are behind on their mortgages or in
danger of losing their home to foreclosure, the new mortgage
plan includes help for borrowers who have been paying on time
but have seen the value of their homes drop. Borrowers will be
able to refinance their Fannie Mae or Freddie Mac loan up to
$417,000 even if their loan amount is up to 105% of the value
of their home. This will help a lot of borrowers refinance into
today's low rates. Unfortunately, the plan will not help borrowers
whose homes have lost substantial value. In many parts of the
country, home values have fallen by 30% to 50% over the past
two years, putting their loan to value at 125% to 150% of current
value or more.
Final Mortgage Modification and Refinance
Plan Details Expected by March 4 - February 23, 2009. The Treasury Department expects to
release final guidelines for lenders and loan servicers by March
4, 2009. While the program is voluntary, lenders are given an
incentive to modify loans and borrowers who qualify are also
given a $1,000 per year reduction in principal. Any home owners
delinquent on their loans should be ready to move quickly after
the March 4 deadline either directly with their lender or with
the help of an attorney, a loan modification professional or
a non-profit counseling agency.
Obama Administration announces Housing
Affordability and Stability Plan - February 18, 2009. The Obama administration today announced
its plan to help borrowers keep in their homes through loan modification
programs and additional help for Fannie Mae and Freddie Mac.
The plan includes loan modification plans and is scheduled to
be rolled out March 4, 2009. Details of the plan are available
here. To find out if you qualify
for a loan modification and if so how much your savings could
be, complete our help request form here.
Bank Bailout Plan for Home Owners Coming
Next - February 17, 2009.
The first priority of the Obama administration, the stimulus
bill, was signed into law today. The next step is for the Treasury
Department to finalize a plan to bail out banks and provide help
to home owners. While there are no details of the plan yet, it
is anticipated that lenders will be given specific instructions
as to how to complete needed loan modifications and prevent as
many foreclosures as possible. For borrowers in need of immediate
relief, click on "Loan Modification" above and complete
the help request form to learn about options for your specific
situation.
Housing Proposals Under Debate Now -
February 4, 2009. The
Obama administration, Congress, the FDIC and the Federal Reserve
are all working to create a set of solutions to help struggling
home owners as quickly as possible. Most proposals include provisions
to modify the terms of existing loans to create new payments
and possibly even lower principal balances. Mortgage Almanac
will update with exact details as programs details are released.
Mortgage Update - January 8, 2009.
Interest rates have plummeted to record lows after the Federal
Reserve not only lowered interest rates but also pledged to purchase
mortgages from Fannie Mae and Freddie Mac. The Fed's actions
should keep interest rates in a target range of 4% to 5% for
most of 2009. Right now, a 30 year fixed rate mortgage with zero
point is at 5% or less so any borrower with an interest rate
of 5.5% or higher may benefit from refinancing. Home owners can
take advantage of these rates to lower their payments. Home buyers
will find they can get much more house for the dollar with these
new lower rate.
Mortgage Update - November 20, 2008. FHA and USDA still going strong. Despite
the pullback in lending, the FHA and USDA rural housing programs
still provide mortgages to borrowers with
Mortgage Update - October 15, 2008. Loan modification options are now available
to more home owners. Government assistance to banks has come
with a requirement that these lenders work with home owners to
modify their existing mortgage loans so that they can stay in
their homes with an affordable payment. MortgageAlmanac
has added loan modification help. To find out if you can modify
your loan, take a look at our loan
modification information
center where you can find
out how to lower your mortgage payments or how to sell your home
with a short sale if you need to move but have negative equity.
Mortgage Update - October 4, 2008. On Friday, October 3, the President
signed into law the mortgage bailout package that could cost
up to $700 billion. If the government goes through with its plan
to purchase loans at a discount, this could mean that nearly
$2 trillion in loans could be either purchased or guaranteed
by the US government. What does this mean for borrowers? Any
home owner whose loan is purchased or guaranteed by the government
will be eligible to stop pending foreclosures, modify their loan
terms or benefit from a short sale or principal write-down. In
other words, real relief is on the way. How do home owners take
advantage of this program? MortgageAlmanac is tracking progress
of the bailout programs and will have further updates as updates
occur. Borrowers can either try to work out a solution themselves
or hire a loan modification specialist (many of whom are loan
officers, mortgage brokers, attorneys and other experienced professionals)
to get them the best possible deal. Our suggestion: as with all
industries, if you hire a professional be careful when selecting
a professional. Most reputable companies will review your situation
at no charge. Some charge a small processing fee of $100 to $700
to complete the modification package requested and most charge
a larger fee when the transaction is completed successfully.
Mortgage Update - September, 2008. The US Government announced on Sunday,
September 7 that it was taking over Fannie Mae and Freddie Mac
before it both companies became insolvent. The FHFA will take
over Fannie and Freddie under a so- called conservatorship, replacing
their chief executives and eliminating their dividends. What
does this mean for mortgage borrowers? According to the US Treasury,
Fannie Mae and Freddie Mac will open for business as usual and
mortgage rates should start getting a little better.
Mortgage Update - August, 2008. President Bush signed the new housing
bill on July 30. Part of it takes effect October 1 and part takes
effect January 1, 2009. What does the bill mean for home borrowers?
See our housing act summary
and what it means for home buyers, refinancing home owners and
even for seniors and reverse mortgages. Fannie Mae and Freddie
Mac have been shored up with government financial help, while
the FHA program has added new programs. Loan limit increases
that were temporary for 2007 have been made permanent starting
in January. The new law takes effect October 1, but it will take
HUD and FHA lenders at least a little while before they can make
all of these new programs available to borrowers.
Mortgage Almanac is here to help. If you need a mortgage
to buy or refinance, we can help guide you through these difficult
times. When you submit a loan request to Mortgage Almanac, you
are assigned an experienced representative who will guide you
from start to finish by assessing your needs, locating the best
lenders, finding the best loan program and then obtaining the
best rates and lowest costs available. Mortgage Almanac
has been helping home buyers and refinancing home owners with
objective mortgage advice since 1995. You can also search through
our state by state listings for listings of lenders and brokers
in your area.
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If you are looking
for a mortgage to purchase or refinance your home, Mortgage Almanac
can help even in today's tougher mortgage lending world. We have
hundreds of detailed articles about buying and financing
your home. Use our mortgage locator service by clicking purchase or refinance and completing the easy
on-line application to get:
- Expert help
right away
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Process to get your loan approved
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