Reduce Your Mortgage Rate To 2%
If you can do the qualification dance well enough today, you can get a mortgage refinance on your current loan for a mortgage rate as low as 2%. The government is willing to help you get your house payment as low as 1/3 of your gross income. You will have to do a little dance, but for 2% on your mortgage some people will do a lot of dance. Here is what the deal on this loan program is.
The Making Home Affordable program is the newest of the loan modification programs. The mortgages have to belong to Freddie Mac or Fannie Mae. These are the two large mortgage loan holders the government took over about a year ago. They are cutting rates to as low as 2% in an attempt to reduce your payments to no more than 31% of the homeowners gross income.
The first thing you need to qualify if for one of these two companies to own your mortgage loan. Even if you received your home loan from a commercial bank, that does not mean that Freddie or Fannie does not hold the mortgage now. These two companies buy many loans from commercial banks.
When you visit the Freddie Mac and Fannie Mae websites, just fill in the information that they ask for about your home and yourself at both sites to find out if they own your loan. No matter what you think, this is worth a shot, you won’t know for sure if they own your loan or not until you check. Sometimes the bank that you received the loan from will sell the loan to one of the agencies and then still service the mortgage, leaving you to believe the bank still owns the mortgage.
For a rough idea if your mortgage amount will qualify for the program, divide your mortgage payment by your gross income, this will give your the percent the payment is of your gross income. Do not forget to add interest, insurance, taxes, and principal together for the entire house payment.
Two other ways you will qualify are; If you have an adjustable rate mortgage that has almost doubled in payment and mortgage loan rates. The second is if you qualified for your loan with household income and one of you lost a job or had a cut in hours worked.
There is a trick to qualifying, you have to convince the bank that your are in dire straights but with the help of the mortgage payment reduction, you will be stable financially. You will not qualify with a large savings account, this is the biggest dis qualifier. You cannot spend 45% of your income on private schools or golf club dues.
You cannot be in to bad of position ether, for example, you won’t qualify on unemployment income that is considered a 6 month income, and the requirement of employment is a strong chance of continued employment for 9 months or more.
There is just a little bitty window to squeeze through to qualify for this program. There was one lender that I read about that was quoted as saying “if you want to get the attention of the lender, you need to be delinquent by a month or two.”
There is help on the internet to see if your qualify, contact HUD, or another non-profit, Homeowner’s toolbox who claim they can estimate the probability of approval best mortgage loan rates for you.
It’s a great time to be shopping for a house with exceptional mortgage loan rates available from reputable credit unions. For extra financial security, have a look at fixed GIC rate products.
