Are you current on your mortgage and want to stay that way? Would you like to take advantage of a lower interest rate to reduce your monthly budget? Or, is there an interest rate adjustment in your future?
The truth is that around 96% of mortgages are paid on-time, and loan modifications are not just for borrowers behind on their payments. Whether you would like to keep a little extra money each month or take action prior to a rate adjustment, help is often available. Interest rates are historically low. Taking action now to get the best rate could help you weather this financial storm. The most important thing is to take action. Contact your lender to learn what opportunities are available, and contact reputable mortgage lenders to find out who offers the best rates and programs in your area. Remember, you’ll have much better buying power if you act before trouble strikes.
Below is a short Loan Modification Q&A with Jill Shafer, Mortgage Consultant for Custom Mortgage Services.
Q. Jill – Many homeowners who are current on their payments are interested in refinancing to take advantage of lower mortgage rates. What options are available to them?
A. There are many options available depending on qualifications. By that, I mean credit scores, equity positions, verifiable income and debt load. Fixed rates are historically low so that may be the choice of many. PMI [Private Mortgage Insurance] companies have different limits than a year ago so situations today may be very different than when a homeowner purchased a home two to four years ago. The best advice is to talk to a lender about each unique situation.
Q. Jill – What options are available to a homeowner whose home value is less than their current mortgage balance?
A. Fannie Mae has introduced a program that will allow a homeowner to refinance up to 105% of their value to include payoff of the existing mortgage plus closing costs. As of today, the PMI companies are not all on board, but after May 1st, additional details will be available. For a homeowner who put 20% down payment into a transaction and would like to refinance today with a home value that has dropped, this program will allow them to refinance up to 105% without paying any mortgage insurance.
Meet Jill Shafer~
Jill has been in the mortgage business for 29 years and has the experience and expertise to determine the best loan program to fit your long term goals and financial objectives. Jill is an honest and ethical mortgage consultant who values the relationships she forms with her clients. She enjoys serving in her community, golfing, bowling and Bible studies and looks forward to hearing from you at firstname.lastname@example.org .
Your comments are welcome and encouraged. Let us hear what you think.