The Vault is Open!
Thread Starter
Joined: Oct 2002
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From: Canton, MA
The Vault is Open!
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From: Crack house in Norton, MA
So, my mortgage is less than 31% of my income, does that exclude me completely? I'm guessing it does. Other than that... I might meet these requirements since I put down 15% on my house 2 years ago and that does prevent me from refinancing because it's most likely fallen to less than 10% now.
Thread Starter
Joined: Oct 2002
Posts: 34,130
Likes: 126
From: Canton, MA
There are two parts to this. Think of it as Slightly underwater, and Completely underwater. Erick and Steve may qualify for slightly underwater.
If your equity ranges from -5% up to 19%, you do not have enough equity to meet the current conforming requirements (typically 20% equity) in order to refinance to a lower rate. This program will let you refinance anyway. Of course, this is only helpful if you can get a lower rate than what you already have. I do not know what is being offered.
As I understand it, currently your note has to be held by either Freddie or Fannie as they are being forced into the program. Others may participate, but I do not know who. I would contact the holder of my note and ask.
If your equity ranges from -5% up to 19%, you do not have enough equity to meet the current conforming requirements (typically 20% equity) in order to refinance to a lower rate. This program will let you refinance anyway. Of course, this is only helpful if you can get a lower rate than what you already have. I do not know what is being offered.
As I understand it, currently your note has to be held by either Freddie or Fannie as they are being forced into the program. Others may participate, but I do not know who. I would contact the holder of my note and ask.
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Thread Starter
Joined: Oct 2002
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From: Canton, MA
Originally Posted by elmmx5,Mar 5 2009, 08:40 AM
I'm not sure I'd even consider myself underwater. I thought I put down a decent amount of money when buying and I made sure I didn't overextend. As of right now, I still have equity in my house. But... if I qualify for refinancing, I certainly will if it makes sense to me. Right now it doesn't; I have a rate of 5.75%. I don't feel the current rates are low enough to make it worth it. The good news is I'd have until the end of 2012 to refinance if I qualify.