Home Refinance Stimulus Package Funding Available Now

Home Refinance Stimulus Package - What is it and Who Will Benefit?
By James A. Kennedy

President Obama has allocated 75 million dollars in funding to the Home Refinance Stimulus Package. The goal of this federal program is to stop the rising tide of foreclosures in the United States. Banks and lenders on the approved lender list are given financial incentives to grant loan modifications to rescue troubled homeowners who face losing their home

The goal of these reworked loans is to achieve a house payment that is less than 31% of their gross monthly income, including property taxes, homeowner's insurance, and homeowner association dues. This is done through a waterfall process, using one or all of the tools at their disposal until the target payment is achieved.

- A reduction of interest to a rate as low as 2%.
- Lengthened loan term as long as 40 years.
- Waiver of late fees.
- Possible reduction of part of the principal.

Homeowners must meet certain guidelines to apply for these modified mortgages under the Home Refinance Stimulus Package:

- The home must be a primary residence, not a vacation home.
- The total loan amount cannot exceed $729,750.
- The loan must have been originally signed on or before January 1, 2009.
- The current mortgage payment, insurance, taxes and homeowners association dues must exceed 31% of the homeowner's gross monthly income.
- Financial hardship must be demonstrated. This means that events beyond the borrower's control have made continuing to pay the high house payment impossible.
- A clear case must also be made, with documentation, that the new modified payment will be quite "workable" and that the loan will be henceforth current.

Millions of homeowners will take advantage of this stimulus money. If you meet these qualifications, you can apply to receive assistance, too. But, you can only apply once, so you need to get it correct the first time. It s best to study the qualification guidelines and fine-tune your application before contacting your lender. This will give you a better chance of success and a much more confident telephone interview.

All figures must be verified by appropriate documentation, so be sure you gather all the necessary paperwork. You don't want to experience unnecessary delay due to an incomplete application. Don't delay; your home is at stake. Maybe you can benefit from the Home Refinance Stimulus Package.

Click here for more information about Obama's home stimulus package.

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Refinancing Information and Advice from Experts to Help You Refinance Any Type of Loan

One Refinancing Question Saves Thousands on Costs

Why Your Refinance Could Cost Thousands Without Asking This Question

You might not know it yet but at the conclusion of this article you will understand the secret of asking your mortgage banker this one question to save yourself thousands of dollars.

Everywhere you go you're hearing the buzz of refinance. You know what I mean, don't you? Mortgage rates are the lowest in a lifetime.

Every day mortgage brokers, loan officers, and mortgage bankers receive phone calls from frenzied borrowers wanting to refinance, especially in these times. Accordingly for many of us interest rates have never been this low and may never be lower again. It is a perfect time to take advantage of the current mortgage rate environment.

Undoubtedly most borrowers that intend to refinance ask one standard question. If I were refinancing, what would my interest rate be?

Here is the problem. When borrowers don't end up with the rate quoted over the phone, they often feel they have been mislead. But there is a reason. The public doesn't understand how to evaluate a refinance.

The truth is lenders know that interest rates vary based on a borrowers credit profile, income, and work history.

In addition the value of the property versus the loan amount, often referred to as loan-to-value (LTV), can influence your interest rate too or may require additional costs such as mortgage insurance.

So you can't hang your hat on interest rates quoted over the phone or viewed on the internet. That means at best these interest rates are merely ball park numbers.

Here is a little known secret. The most important question you need to ask your lender if you intend to refinance is what will it cost me?

You probably can understand that multiple charges are incurred during refinancing. Certainly, one of those costs is the interest rate you are going to be charged. It is the most important one but not the only one.

Consequently if you want to know the true cost of refinancing ask your mortgage lender to prepare you a Good Faith Estimate (GFE) upfront before you apply for a home loan.

Did you know a Good Faith Estimate is an itemized estimate of the costs to obtain a mortgage? You should ask for a GFE in the first conversation with a prospective lender whether you are buying a house or refinancing your existing home loan.

You can even ask for more than one if you want to compare different loan products although it means more work for your loan officer.

Either way when you refinance, there are costs incurred in connection to the loan such as loan origination fees, loan discount points, appraisal, credit report, processing fees, underwriting fees, tax service fees, and others.

Equally important there are also the costs related to title and escrow such as closing fees, preparation fees, notary and attorney fees, as well as title insurance.

Other fees included are related to government recording and transfer charges as well as any miscellaneous additional settlement charges that may be required.

These expenses occur one time only and thus are aptly named non-recurring closing costs.

There are also costs that may be required by the lender called recurring costs such as interest to be paid in advance depending upon what day in the month you close. Lenders call this prorated or prepaid interest. Other prepaid costs may include reserves required by the lender for hazard insurance, mortgage insurance, property taxes, or flood insurance.

In addition to the non-recurring and recurring costs for mortgage refinancing, your mortgage representative must be paid. The Good Faith Estimate should include the mortgage lenders compensation often referred to as a yield spread premium (YSP).

Many describe the yield spread premium as no cost to the borrower since the lender writes the check for it. However the YSP compensation raises the interest rate which increases the mortgage payment for the entire term even though it is not coming out of loan proceeds.

So be sure your lender discloses all the costs for obtaining a mortgage, including who is paying them and how much. Your mortgage company deserves to get paid as long as it is disclosed and within reason.

At the bottom of your GFE should be two columns, Total Estimated Funds To Close, and Total Estimated Monthly Payment. This is your true cost to refinance. If you have more than one GFE, you can compare them to each other by using these two columns at the bottom of the form.

When it comes time to sign your refinance documents at closing be sure to bring your GFE with you so you can compare it with your final closing statement.

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Kate Ford, an experienced mortgage insider at Get Your Best Mortgage Rate, understands mortgage lenders have been speaking a language different from the ordinary homeowner and home buyer in America. Wouldn't you feel better knowing you possess the 10 best kept secrets to low mortgage payments? To break through the lingo of mortgage lending, visit =>
http://www.get-your-best-mortgage-rate.com/Low-Mortgage-Payments.html
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Refinancing Information and Advice from Experts to Help You Refinance Any Type of Loan

Right Time For You To Refinance?

Need To Refinance?

If you have a rather large debt, or are finding it difficult to get your payments dealt with on time, you may be thinking about refinancing. There are both positive and negative aspects in refinancing, so it is important for you to assess all of the relevant factors involved before you reach a decision as to whether or not it is the most appropriate option for your needs.

Refinancing can help you by lowering your interest rates. If you have a large debt, and especially if your payments have extended for a considerable period of time, you probably know how fast interest can build up. This in turn makes the total amount which you are obligated to pay quite high. A simple, basic check of your paperwork will give you this information in a clear manner. When you check the percentage, you will see how much your total debt is affected by interest. Refinancing can help you with this!

It can also be a positive solution if you are having difficulty making your payments in full and on time. Depending upon the specific terms of your lender, the terms of your new agreement can be much less of a burden.

If you are considering refinancing, the main point to keep in mind is to make sure in advance that it will put you in a better position than you are currently in. This means ensuring that the terms of the agreement are reasonable, and that they will meet your specific needs. One example is to make sure the new interest rate will be beneficial to you in the longrun. You do not want to end up paying more than you would have on the intial schedule. Another important factor to consider is whether this particular lender will charge you a penalty in the event that you wish to pay off your loan sooner than you are required to do so. While many lenders do charge such a penalty, it is generally better if you can find a lender who does not. As no one can be completely assured of their future financial circumstances, provisions which will allow you to repay your loan ahead of time if you are able to do so can be an asset.

Refinancing can be a very useful tool in resolving your financial difficulties. However, in addition to determining that it is the best option for your needs, in order to produce the best results without any unnecessary problems, it is essential to find both the lender and the agreement which are the most appropriate to your situation. Although your lender may be a professional, this does not mean that it is either wise or safe to enter into such an agreement without completely discussing the terms and examining it in its written form beforehand. As the entire purpose of refinancing is to make the financial obligations that you have easier to deal with, you need to know that it will not only provide short-term benefits, but will not have a negative impact on your financial situation for the duration of the loan.

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Gary Giardina
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Refinancing Information and Advice from Experts to Help You Refinance Any Type of Loan