Currently Underwater? By a Little? Or a Lot?
You May Still be Able to Refinance!
If you are underwater with your mortgage (doesn't matter how much), you may be able to qualify for a refi. This is for loans that are owned by Fannie Mae or Freddie Mac. Even if you make a payment to your bank. The loan had to have been put in place before June 1, 2009. You must also be current on your payments.
Here are the links to the Fannie & Freddie websites:
If your original load provider still services your mortgage, it may NOT still own it. To put it accurately, lenders often collect the installments and service the loans even after they sell the mortgage to Fannie Mae, Freddie Mac, or another investment fund. Don't assume that your bank still owns your loan. Furthermore, you are better off not contacting your loan company directly since the customer support representative is probably clueless as to whether your loan remains in the bank's portfolio. Additionally, you would be on hold for an hour. For this reason, you need to research who really owns the loan to find out if you can qualify. You can do this by examining the Fannie and Freddie sites.
If you found that your original mortgage is owned by Freddie or Fannie, you can consider what you can save through refinancing. This is done by calculating how much it would cost to try and do the refinance as well as how much cash you'll conserve monthly. If your mortgage loan is modest (under $100,000 for instance), you might not stand to save a whole lot given that the fixed costs of refinancing would not make it worth it. The larger the home loan balance, the more money you can possibly save every month. An example of what you can potentially save is highlighted below:
The numbers listed above are approximate. Your credit score, income, and actual situation will ultimately determine how much you can save through refinancing.
Mortgage Consultants make a difference!
With a Mortgage Consultant, you can achieve:
- Get better rates & lower payments
- Restructure debt to minimize tax liability
- Net worth and home equity strategies
- Acquire additional real estate assets
Call for a FREE Consultation regarding the following:
Our services include:
- New Home Loans
- Rehab Loans
- Short Sales
- Home Equity Line of Credit (HELOC)
- FHA Loans
- VA Loans
- Short Refis
- Fixed Rates & ARMs
There are many ways we can help you save more, invest more and keep more of your money
When making one of the most important financial decisions of your life, having a mortgage loan officer with a strong background in finance is valuable. Understanding affordability, time value of money, and the impact of changing interest rates are just some of the concepts we address when considering a customer's best interest. Our focus is on your long-term financial needs which include the following:
- Lower your monthly payments
- Lower your interest rate
- Pay off your mortgage faster
- Reduce income taxes
- Build your equity
- Generate income
- Plan your retirement
- Additional real estate investments
When to Refinance
Many mortgage loan officers fail to understand (or tell the customer) the time value of money and push products that make
little sense. For example, pushing a refinance product without taking into consideration the fees involved often cost a
customer a sum in which it will take many years just to break even! This is from the many hidden fees involved in the
refinancing process. A slightly lower interest rate must be weighed against all the fees involved before deciding to refinance.
At Mortgages PhD, you will know in advance all fees involved prior to refinancing.
View our blog at MortgagesPhD.com/blog to see the latest news, tips, and guidelines regarding real estate finance.
Eileen E. Jacobs,
- New Home Loans
- Rehab Loans
- Home Equity Line of Credit