Even if your home is underwater, new HARP guidelines may be able to help you save money

8 12 2011

I wanted to pass along an idea that may help you or someone you know…

Very recent changes to the government refinance programs for Fannie Mae & Freddie Mac-owned mortgages are providing many people – who had previously been unable to refinance – the opportunity to do so at phenomenal rates!

If you haven’t refinanced since May of 2009, check to see if your mortgage is owned by Fannie Mae or Freddie Mac (links to the web sites are below).  If your mortgage is owned by one of those two, and if it was with Fannie or Freddie PRIOR to June 1, 2009, then you may very well be eligible to refinance, even if you owe more on your home than the home is worth.

Here is an example of a loan I got approved this week :

Lisle – owes a combined $278,000 and the home is worth $240,000 for a 116% combined loan to value. I have them approved on a 30 year fixed at 4.115% with no closing costs. They are saving $138/month.

The appraised value of your home may have declined, and as such, refinancing the “normal way” – even to a lower rate – would be prohibitive as it would normally include PMI.  With these new program changes however, a refinance may now be a real possibility and may save you a bunch of cash.

THE KEY – and this is very important – is that your CURRENT loan must have been Fannie Mae or Freddie Mac-owned PRIOR to June 1, 2009, and that you don’t currently have Mortgage Insurance.

Here are the links to both web sites you can use to check and see if your loan may be one of those eligible for this special refinance program: (or give me a call and I will check for you).

Fannie Mae’s site:  http://www.fanniemae.com/loanlookup/

Freddie Mac’s site:  https://ww3.freddiemac.com/corporate/

Let me know if you have any questions!

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