UPDATE JUNE 19, 2010: The Home Affordable Refinance Program has become much easier to do since writing this post with both Fannie Mae and Freddie Mac securitized mortgages. This post is pretty outdated (the hazards of writing about mortgages on a blog!) If you need help with refinancing your home in Washington, please contact me.
Here is an updated information on Fannie Mae's Home Affordable Refi.
NOTE: This program is still "evolving". Wholesale lenders/banks and private mortgage insurance companies are still issuing and revising their guidelines. I'll try to update this post with current information as I receive it.
Fannie Mae will be implementing the Making Home Affordable Refi starting April 4, 2009. Some home owners will be free to use any mortgage professional (as long as they are Fannie Mae approved) and others will be forced to return to their mortgage servicer.
First of all, I am only licensed to provide residential mortgages for homes located in Washington State.
UPDATE: IF YOUR MORTGAGE IS OWNED BY FREDDIE MAC, I MAY BE ABLE TO HELP YOU. YOU DO NOT HAVE TO GO TO YOUR MORTGAGE SERVICER (WHO YOU MAKE YOUR PAYMENTS TO).
Currently, for the Home Affordable Refinance, Freddie Mac is requiring that home owners return to their mortgage servicer. To determine if your mortgage is owned by Freddie Mac, click here. If your mortgage is owned by Freddie Mac, I probably cannot help you with an Making Home Affordable refinance. However if your current mortgage is owned by Freddie Mac and you have home equity (you're not upside down); I may be able to help you. Fannie Mae has a larger market-share than Freddie Mac…odds are in your favor, but check Freddie Mac first. UPDATE: Since writing this post, one major bank has informed us they will allow us to originate Home Affordable/Freddie Mac mortgages as long as we broker the loan back to them.
If your mortgage is not owned by Freddie Mac, the next step is to see if it's owned by Fannie Mae. You can determine that by clicking here. Unlike Freddie Mac, Fannie Mae is allowing home owners to use eligible mortgage brokers, bankers and correspondent lenders of their choice. If your mortgage is owned by Fannie Mae (and your home is in WA); I may be able to assist you with your Home Affordable refinance.
Here are some important pointers about Fannie Mae's Home Affordable refinance (homes at a higher loan to value):
- Second mortgages must be subordinated. They may not be included (paid off) with the home affordable refinance.
- Borrowers on the existing mortgage must match the new mortgage. Borrowers may be added but they may not be removed. UPDATE: Borrowers can be removed under certain circumstances.
- If a borrower currently has lender paid mortgage insurance (a slightly higher rate that financed private mortgage insurance) they may have to return to their mortgage servicer (who they make their mortgage payments to) for a Home Affordable refinance.
What if your existing mortgage is FHA or VA? You may qualify for a FHA or VA Streamline refinance which may not require an appraisal or income verification (you will need a mid-credit score of 620 or higher).
Lenders are currently inundated with refinance and purchase business due to the current low mortgage rates. I encourage you to apply early and be very patient. Washington State home owners can apply using my secure on-line application under "Favorite Links".
The bottom line is, if your home is in Washington I can at the very least help point you in the right direction and at the most, I can help you with your new refinance.