If you’re looking to take advantage of the low NH mortgage rates but the value of your home has made it impossible, things just got a whole lot easier!
The Making Home Affordable Mortgage Refinance Program “looks the other way” with respect to current home values, approving NH mortgage applications based on borrower payment history, benefit to the homeowner. with reduced payments and ability to make payments going forward.
NH mortgage applicants have to meet a few basic qualifications to take advantage of the Making Home Affordable refinance program.
Those with NH mortgages must first determine if they have a Fannie or a Feddie loan. Most NH loans (with the exception of NH FHA loans) are with one of these agencies. Fannie’s online tool is much easier to work with and, since they have a larger percentage of loans, there’s a greater chance that you’ll have your answer with one visit. Freddie’s site requires a NH home owner to enter their social secirity number, too.
Next, you must have a perfect mortgage payment history over the last 12 months. Even one payment made 30 days late disqualifies you from participating in the Making Home Affordable program. It is okay, however, if you were 20 days late on your payment and incurred late fees.
And lastly, the balance on your mortgage cannot exceed your home’s value by more than 5%. The math formula is (Mortgage Balance) / (Home Value). If the quotient is greater than 1.05 then your loan-to-value exceeds 105% and you are not eligible for Making Home Affordable.
If you’ve made it this far, there are some things to keep in mind:
1. If you didn’t pay mortgage insurance prior to refinancing, you won’t have to pay it after refinancing — even if your loan-to-value exceeds 80%.
2. All NH mortgage refinances under this program and pretty much every other program available require income verification — even if the original mortgage was a stated income loan.
3. Second mortgages cannot be paid off using loan proceeds — they must be subordinated
Fannie and Freddie each of other guidelines that need to be followed as well. And, of course, their guidelines are different from each other! Like most government programs, their guidleines are created by the pound and all of us are learning as we go. My recommendation would be to give their guidleines a brief review before talking with a local NH mortgage lender (like me!) so that you have a general understanding.
If you have followed along and determined that this may be a good option to refinance your existing NH mortgage, it probably makes sense to act sooner rather than later. While, the program doesn’t end until June 10, 2010 , low NH mortgage rates probably won’t last that long so pick up the phone and give us a call or complete the no obligation application and we’ll help you sort this out ASAP.
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