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.

Have questions? Send me an e-mail