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.