ECONOMIC STIMULUS & MORTGAGE REFINANCE

Refinancing your mortgage often requires you to have equity in your home, typically 10% or more (90% or less loan-to-value or LTV).
What if you're in a loan with a variable rate that has a rising interest rate?
Under the stimulus plan, there are financial incentives to lenders who refinance loans and the borrowers don't miss payments for three years.
The mortgages must be owned or securitized by Fannie or Freddie which means they have to be moderate-sized mortgages below the conforming limits.

Other good news - for those with FHA or VA loans, there are more provisions to help so talk with your lender. Additionally, these loans are assumable for a buyer so if you can lock in a good rate, that should help you out when rates rise -- a buyer could give you a downpayment and then assume your lower interest rate mortgage rather than take out a new main mortgage.

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Economic Stimulus



The economic stimulus bill will likely be signed by President Obama very soon.



This bill includes an $8,000 tax credit that will replace the current $7,500 tax credit and will be in effect for homes purchased by 1st Time Homebuyers from January 1, 2009 through end of November 2009, subject to income limits.



The main difference is that this new credit is not repaid unless the home is sold within 3 years.



Great news y'all - up to $8,000 as a grant to make the affordable homes even more affordable.



Interest rates are good, selection is still good but with sales increasing and inventory decreasing, the homes that are well-priced and in acceptable condition will sell first, leaving the over-priced trashed homes.



It's a very good buyer's market!