Application Home mortgage Refinance

can you still do a refinance home mortgage program with bad credit 350x234 Can You Still Do a Refinance Home Mortgage Program With Bad Credit?A refinance home mortgage program can be an excellent opportunity to save a significant amount of money in interest. However, these days more people than ever have credit challenges which can make it difficult to qualify for a refinance. The article below discusses some tips for credit challenged people who are considering refinancing their mortgage.

Refinancing your mortgage can save you hundreds of dollars a month and potentially tens of thousands of dollars over the life of a standard 30-year home loan.

If you’re nervously watching interest rates rise, and are thinking about refinancing your home, you may have been sitting on the sidelines because you’re worried about your credit. While refinancing a mortgage is no doubt tougher to accomplish when your credit is so-so, or even bad, you can nevertheless get a refi done. Here are five tips to help you refinance your home loan, even if you have blemishes on your credit report.

Tip #1: Don’t Expect Ultra Low Interest Rates

You’ve no doubt seen mortgage advertisements online, in newspapers, or on radio and TV offering homeowners rock-bottom interest rates – sometimes as low as 3% to 4%%.

Well, good luck actually getting a loan at those very low rates, despite all those ads.

According to BankRate.com, as of July 29, the average 30-year fixed rate mortgage was 4.38%. So if you were hoping for record low interest rates in the sub-4% range, those days have passed.

Rates have been rising in recent weeks – especially after the Federal Reserve Bank announced in July that it would stop buying back bonds, a move that had been keeping interest rates artificially low.

cred 1 article small 30572 Can You Still Do a Refinance Home Mortgage Program With Bad Credit?There’s another reason, though, that some people shouldn’t be fooled into thinking they’ll get those “teaser” rates that lenders often advertise: It’s that the very best, low interest rate mortgages are reserved for pristine borrowers.

So if your credit is shaky, you can refinance – but just not at the cheapest loan rates available in the marketplace.

Tip #2: You typically need to have equity in your property

In the current environment, most lenders will generally not refinance your existing mortgage if your home is underwater and you owe more on the property than it’s worth.

Even if you’re not underwater, some banks won’t even want to refinance your current mortgage if you only have a little bit of equity in your house.

The reason banks shy away from refinancing properties with little equity is because the new home loan is made based on the current market value of your property.

Without much equity, your loan is seen as “riskier” – and that reduces many lenders’ willingness to issue you a new mortgage.

Also, the more conservative the bank, the greater the amount of equity they will want you to have. For example: very conservative lenders may want you to have 25% to 30% equity in your home for a refi. In other words, they want your loan-to-value or LTV ratio to be 70% to 75%.

If your credit is shaky, you can refinance… just not at the cheapest loan rates available in the marketplace.

In dollar terms, a 75% loan-to-value mortgage means that a lender is willing to lend $300, 000 on a property worth $400, 000.


Home Loan Mortgage Modification

2009-12-23 09:42:34 by 56andfixed

Program Faces Rising Defaults Due To Unemployment
December 23, 2009
By Lee McFarland
"The home loan mortgage modification program has found that around 40% of homeowners who had their mortgage payments cut are falling into default once again due, mainly, to unemployment and the loss of income."
"The Obama Administration’s loan modification program was set to stop a flood of foreclosures, but with many American’s losing their income due to the weak job market there is little to be done

Home loan troubles break records again

2008-12-08 07:12:32 by --

Delinquencies, foreclosures rise to 10 percent of US home loans in third quarter
WASHINGTON (AP) -- A record one in 10 American homeowners with a mortgage were either at least a month behind on their payments or in foreclosure at the end of September as the source of housing market pressure shifted from risky loans to the crumbling U.S. economy.
The percentage of loans at least a month overdue or in foreclosure was up from 9.2 percent in the April-June quarter, and up from 7.3 percent a year earlier, the Mortgage Bankers Association said Friday

Golden dream or foreclosures by the sea?

2007-08-01 16:48:36 by PETA_

- "The golden dream by the sea" is how Gov. Arnold Schwarzenegger has fancifully described California. Yet for thousands who bought homes during the Golden State's latest housing boom, foreclosures have turned recent months into a nightmare. Dorothy Hicks, 74, a retired federal employee in Oakland, California, is seeing her American dream of owning a home teetering on the edge of collapse. After refinancing into an adjustable-rate mortgage last year, she faces possible foreclosure on her home of nearly 40 years.
Hicks says she was told the mortgage was a fixed-rate loan, but was soon overwhelmed by soaring payments when its interest rates rose

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Dallas cyber-crime maestro's luck runs out  — Dallas Morning News
In his 2007 heyday, this Nigerian-American scammer was stealing more than $7 million a week from home equity lines of credit. In all, the FBI estimates he took between $80 .. of money, the U.S. housing boom was in full swing.

Rules and reactions.(home affordable refinance program): An article from: Mortgage Banking
Book (Mortgage Bankers Association of America)

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