Monday, April 13, 2009
Fannie Mae DU Refi Plus
The new Fannie Mae DU Refi Plus program began last week and we are still trying to work out some of the bugs. The program, which is supossed to help overleveraged homeowners, is still calling for appraisals on many deals. Part of the program is the benefit of being able to get an appraisal waiver so you can refinance to take advantage of today's historically low rates. While you still can take advantge of the low rates, odds are you will still need to get an appraisal. The nice part of the program is that if you did put money down on your current mortgage you still may be able to take advantage. For example, if you bought your home in 2005 for $300k and it is now appraising for a number around $250k, and you put 20% down, so your loan amount is $240k minus any principal you may have paid down in the last 4 years. You can still refinance and take advantage of rates that start in the 4's on a 30 year fixed, even though you have lost almost all of your equity you still will not have to pay mortgage insurance on the new loan. You will be able to payoff your current loan, and add in any closing costs to make up the new loan with the new rate. There are many more details to this program, but it can help many people. Feel free to contact me with any questions and we can see if now is the time for you to take advantage of your very own stimulus plan.
Monday, March 2, 2009
It May Be Time to Refinance!!
In the next couple of weeks you will have a fantastic opportunity to refinance and take advantage of these historically low rates if you have not been able to do so because of lack of equity in your home. Under a new Obama plan if you have a mortgage that is backed by Fannie Mae or Freddie Mac you will be able to refinance your mortgage even if your loan-to-value ratio is as high as 105%. If you currently have mortgage insurance, you will continue under the current terms. If you don't have mortgage insurance, but you now have less than 20% equity, you will still be able to refinance and you will not have to add mortgage insurance. You will not be able to take any "cash-out" with this new refinancing plan. Your new loan balance can only be the principal balance of your previous loan plus anyclosing costs and prepaid items (taxes and homeowner's insurance) that you incur with your new loan. If you have any questions regarding this new program or would like to see if refinancing is the right option for you, feel free to e-mail me at jim@jimsteelrealestate.com or call 763-416-9388.
Wednesday, February 18, 2009
Stimulus Bill
Well Barrack Obama has signed the Stimulus Bill and he stated that this is the beginning of the end of the economic meltdown we are in. Unfortunatley for the housing industry there is not much to it. A few items that did come out of it for housing were.
1. The first-time home buyer tax credit was raised to $8000 if you purchase a home in 2009 and this $8000 does not need to be re-paid.
2. The government will be trying to help homeowners prevent foreclosure by giving bonuses to the lenders for modifying home loans, so homeowners can remain in their house.
3. If you owe more than your house is worth, you will soon have a couple of options.
a. You can try and negotiate with your lender to get them to lower your principal balance and interest rate to a level that is within certain debt-to-income ratios. The lender will be re-imbursed by the gov't for any principal reductions the give. They will also be entitled to 50% of any equity you earn from that day forward.
b. Starting in April, you can refinance you may be able to refinance your loan without an appraisal. So if you would ike to take advantage of today's historical low rates, but do not have the equity to do so, you will be able to starting in April. You can only do a rate-term refinance, you can't take any cash-out.
4. The conforming loan limit in the metro area remains unchanged at $417,000 but the FHA loan limit was raised back up to its temporary 2008 level of $365,000.
These are small stepping stones to a big problem. If you want a good explanation of how we got into this mess in the first place, look for a CNBC Special Report, "House of Cards" It is a 2 hour special on how the mortgage world collapsed. VERY WORTHWHILE!!!
1. The first-time home buyer tax credit was raised to $8000 if you purchase a home in 2009 and this $8000 does not need to be re-paid.
2. The government will be trying to help homeowners prevent foreclosure by giving bonuses to the lenders for modifying home loans, so homeowners can remain in their house.
3. If you owe more than your house is worth, you will soon have a couple of options.
a. You can try and negotiate with your lender to get them to lower your principal balance and interest rate to a level that is within certain debt-to-income ratios. The lender will be re-imbursed by the gov't for any principal reductions the give. They will also be entitled to 50% of any equity you earn from that day forward.
b. Starting in April, you can refinance you may be able to refinance your loan without an appraisal. So if you would ike to take advantage of today's historical low rates, but do not have the equity to do so, you will be able to starting in April. You can only do a rate-term refinance, you can't take any cash-out.
4. The conforming loan limit in the metro area remains unchanged at $417,000 but the FHA loan limit was raised back up to its temporary 2008 level of $365,000.
These are small stepping stones to a big problem. If you want a good explanation of how we got into this mess in the first place, look for a CNBC Special Report, "House of Cards" It is a 2 hour special on how the mortgage world collapsed. VERY WORTHWHILE!!!
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