Do you have a Mortgage?

If you have a mortgage (and you’ve not been a client of NO MORE Mortgage for the last few years) chances are high that you owe more on your first mortgage than your home is worth. Have you wondered if you should consider sacrificing your credit by walking away — or if there is a better solution?

Now there is good news for quite a few of you. Today the Housing Secretary announced that the Obama Home Affordable Refinance Program has increased its loan to value limit from 105% to 125%! So I recommend that you call your mortgage lender today if you think there is a possibility that you meet all four of the following criteria:

-You want to lower your interest rate on your mortgage, or change from an adjustable rate to a fixed rate. (I highly recommend that you refinance to a fixed rate if you think you will be staying in your home for another three years or more.)
-Your current mortgage is backed by Fannie Mae or Freddie Mac. (If you don’t know, call your lender to find out.)
-You are current on your mortgage payments.
-Your first mortgage is not more than 125% of what your home will appraise for today. (Check with a local Realtor as appraisals are coming in very conservatively lately.)

If you are behind on your mortgage due to an interruption or decrease in your income, and you have a steady income now, make sure that you are talking to your current lender about taking advantage of the Home Affordable Loan Modification program for a reduction in your interest rate, and possibly a reduction in your loan balance. Programs generally try to reduce your total mortgage payment to an amount that does not exceed 38% of your gross monthly income.

Make sure that you have figured out your income and your budget so that you can answer the necessary questions, then Make That Call To Your Lender. You have nothing to lose and lots to gain if you fit into these expanded guidelines.

Related posts:

1. Financial Salvation for Senior Homeowners
2. Homeowner’s Debt Elimination Program (Overview)