Making Homes Affordable Program Extended

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The Making Homes Affordable Loan Program has been extended for another year. The new expiration date for this program is June 30, 2012. Meaning, in order to qualify for this loan, the refinance must be completed by that date.

You could be thinking… “Great! What exactly is the Making Homes Affordable loan program?” Fantastic question! I’m glad you asked.

Making Homes Affordable (also know as DU Refi Plus for Fannie Mae loans OR Freddie Relief for Freddie Mac) is a loan program designed to help homeowners, whose property values may have declined, take advantage of the current historically low interest rates. Qualified homeowners can refinance their mortgage up to 125% of its current appraisal value.

The best part? If you are not paying mortgage insurance on your current loan, there will NOT be mortgage insurance on your new loan!

In order to qualify for the loan, homeowners must:

  • have closed on the current loan prior to June 1, 2009
  • verify the mortgage is held by Fannie Mae or Freddie Mac
  • be current on the mortgage payment
  • not be paying private mortgage insurance on the current mortgage*
  • subordinate or pay off any other liens (home equity line or fixed second mortgage) on the property**

* – if the loan currently requires mortgage insurance, there is a possibility of transferring it to the new loan

** – in order to subordinate other liens, the guidelines of the lien holder must be met. If unable to subordinate a second mortgage on the property, the homeowner would need to payoff the second mortgage in order to qualify for the Making Homes Affordable program

Remember that this loan program pertains to the first mortgage only. While closing costs can be rolled into the new loan amount, no other debts can be put into the new mortgage. This means the program does not allow cash out refinances or consolidating multiple mortgages.

Making Home Affordable loan program is a great tool for homeowners to use to refinance their current mortgage. Several of my clients have used it over the past couple of years and saved money by lowering their mortgage payment!

If you’d like to save money on your mortgage payment and get started with the loan process:

  • The first thing to do is decide if it makes sense to refinance your mortgage. I have five quick and easy questions to ask you that would determine if a refinance is the right financial decision to make.
  • Next, let’s figure out if Fannie Mae or Freddie Mac hold your loan. That is something we can research together OR you can easily look it up yourself at Fannie and Freddie’s websites. For Fannie Mae, use this link. For Freddie Mac, try this one.
  • Then, we need to start the loan process by getting you prequalified for a mortgage. This part of the process will be very similar to the process you went through when you initially purchased the home.
  • Finally we put it all together. If the monthly savings indicate it might make sense to refinance AND Fannie Mae or Freddie Mac own your mortgage AND you qualify for a new loan, then it would be time to order an appraisal and get the ball rolling!

How do you get started with part 1 of this process? That is easy, contact me! If the home is in the state of Georgia, I would be able to help you with the refinance. You don’t have to use your current loan servicer, and can refinance with whomever you choose. What are you waiting for?!?

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One Response to “Making Homes Affordable Program Extended”

  1. Questions to ask when refinancing « The Mortgage Blog Says:

    […] The Mortgage Blog Professional, Honest Mortgage Advice from Dunwoody Mortgage Services « Making Homes Affordable Program Extended […]

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