Mortgage Refinancing Made Simple
Cut Through the Red Tape and Obtain a Lower Interest Rate
Mar 29, 2009
Are you one of the 40 percent that can renegotiate their home loan? In many instances the bank you pay monthly loan or mortgage payments to is not the owner of your loan, so the first step is finding out if Freddie Mac or Fannie Mae owns your loan. Contact your bank or loan company to find out if either one of these banks owns your loan. Or, contact Fannie Mae or Freddie Mac directing by calling 1-800-7Fannie or 1-800 Freddie, 8:00am to 8:00pm Eastern Standard Time (EST).
Who Qualifies?
Fannie Mae and Freddie Mac recently released guidlines on refinancing and loan modification options for homeowners. The guidelines implement President Obama's "Making Home Affordable" program. The criteria has been expanded for those who qualify for a new mortgage under President Obama's housing plan.
Individual banks are now in the process of reviewing guidelines and analyzing the information contained within President Obama's Homeowner Affordability and Stability Plan, "Making Home Affordable."
Generally, two groups of home owners will qualify for a refinance package:
- A group of 4 to 5 million home owners whose home values have dropped but are not a foreclosure risk
- Adjustable-rate-mortage (ARM) owners, who compromise around 3 to 4 million home owners, could have their loans modified to a lower interest rate for at least five years.
Check any self-assessment tools your bank may offer to clarify your situation. Many banks have online personal inventory calculators that can help begin to guide you in the refinancing process.
Act Quickly
Loan officers estimate that there will be a flood of applications mid to late April 2009. It is in your best interest to contact your bank or loan company quickly to work through the paperwork towards refinancing your mortgage. In some instances you can obtain a direct phone number to contact your loan officer, rather than wading through numerous numbers and connections in order to speak to the right person.
Documentation
The current paperwork you will need to refinance your mortgage or loan includes, but might not be limited to:
- Information regarding your monthly gross (before tax) income of your household
- Your recent income tax return
- Information regarding any second mortagage on your house
- Account balances and minimum monthly payments due on all your credit cards
- Account balances and monthly payments on all your other debts such as car loans and student loans
Gather your paperwork early and place in a special refinance folder. Talk to your loan officer about your individual debt circumstances and about any questions you might have early on in the process in order to expedite your home refinancing package.
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