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The Home Affordable Refinance Program is a government program that aims to help underwater borrowers refinance their homes. A homeowner is underwater when they owe more money on their mortgage than their home is worth (this is also known as being upside-down or having negative equity). When someone is underwater, they have a loan-to-value ratio that is greater than 100%, and this generally precludes them from refinancing their mortgage.
The big problem with this is that many people who are underwater bought at or close to the peak of the housing market (around 2006). At this time, mortgage rates were significantly higher than they are now. Many of these borrowers have good credit and a history of making payments, but are unable to take advantage of today’s lower rates.
The program allows those who have loans that are currently owned by Fannie Mae or Freddie Mac and are underwater (up to LTVs of 105%, and possibly 125% depending upon your lender) to refinance into a new Fannie or Freddie loan at today’s low rates (see Fannie Mae’s website for full details).
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Home Equity Loans
www.homeequityabc.com : A home equity loan means borrowing money from a bank against the equity that you currently have in your home. The equity ...
How do I refinance a 95% loan to value home when my total is under 100,000? What programs help rural american?
I have been trying to do the hope for homeowners and it does not work. There are no banks in Minnesota even though I qualify. I need help now, not in another month of waiting on administration.
You should be looking at an FHA loan
Can you refinance 100% loan-to-value in Texas, and cash out on the equity for home improvements?
Meaning, we owe $99K, can we refinance for $125K?
(to Amanda: 100% loan to value means getting a loan for 100% of the home's value. Just because you owe on a home doesn't mean you owe 100% of what it's worth.)
EDIT: If you really want to get technical Amanda, there is no "a" before 100%. So, it's clarified just fine. You read it wrong. No, I didn't ask if you could refinance a loan that is 100% of the value of my home. Go back and read again.
Texas state law says that the only way you can do a 100% on the first refinance after the purchase but the only way to do that is if you still owe 100% of what the house is worth because you can't get cash out. If you wanted to do cash out you could but you would not be able to go above 80% loan to value due to Texas state law.
EDITED TO ADD:
And I know what 100% Lown to value is. You said, "Can you refinance a 100% loan to value...." Which means that you have a 100% LTV that you want to refinance. So perhaps you need to be more clear if you expect a correct answer.
Yes, you can refinance from 90K to 125K if the home is valued at 125K, but your interest rate may be higher due to the risk and you may end up with PMI, which you probably dont have now. Just some things to consider.
www.totaldebtsolutionsllc.com
Loan officers in our network do loans in Texas all the time.
If you a buy a home w/ 100% fiancing and got some "instant equity" how soon can you refinance?
We got approved for a loan w/ 100% fianncing but the payments are high due to PMI. Our price is about $15K less than the home value, thus we should have some "instant equity". We are just wondering how soon we could refinance in order to have lower payments? There is no pre-payment penalty on our current loan, but since we do not have our own money invested yet, we are wondering if we'd be able ro refinance soon?
You can refinance right away using true value if you are only trying to lower your payment (rate and term). If you are wanting to tap into the extra equity you will need to wait a year with most banks, however there are a couple that have been allowing 6 months. There are many considerations since you will also incur new closing costs in refinancing your home. You may consider using the extra equity to help buy your rate down (it doesn't count as a cash out). Strange that people would answer this question and not really know the answer. Call your loan officer and let them know you need a rate and term to true value, if they say you can't do it, go somewhere else because the person you are working with doesn't know they're doing. You can use your "soft equity" to pay the closing costs and receive up to $2000 in cash without breaking the rate and term limits.
Caution: The fact that you can do it doesn't mean it will make sense once you factor in the costs, you may not save much on your pmi.
The first answer is if you do nothing to the property, then it depends of the policies of the bank. Most lenders want to see at least 6 months for the loan to "season" before they will consider refinancing. However, with the current housing market, in which many areas have property values going down, many lenders are stretching this to 12-18 months.
The second answer is if you do some work to the property, many lenders will recognize a higher value in as little as 60-90 days.. Keep your receipts for carpet cleaning, landscaping, and make logs of repairs or painting and the like that you do, you can make a case that some remodeling of yours will increase the value of the house. If you do it smart, you can make a case that the home is worth the additional value without the seasoning. Remember, don't lie about any remodeling, painting or repairs you did, but you can often present it in a very positive light.
Hope this helps
What can I do, with refinance my home?
I purchased my home back in July 07, I have a fixed interest rate, but my rate is really high 10.75. I did 100 % finance and I also went stated. I live in NJ, I believed my home value went down, is there anyway I can refinance my home to get a low interest rate after 6 months. I have okay credit score I believe it is 683.
I don't see how it is possible to re-finance a home that had 100% financing 6 months ago and has declined in value since then. You would be asking for refinancing at 100+% at a fixed rate and that just is not going to happen. Sit tight, ride out the cycle and enjoy your home until better days arrive.
How can I find out if my home value went up?
I just purchased my home in Aug, 07. I did 100 percent finance, and I would like refinance so I can get lower interest rate. I currently have 10.75 as a rate with a 30 year fixed interest rate. I just want to know how can I find out if my value went up and if I can refinance just for a lower rate.
you can get appraisal usually cost a few hundred dollars or just look at sales in your areas for comparable homes
Get on your county tax assesor website and see what recent sales in your neighborhood are valued at. Look on the MLS and see what houses comparable to yours are selling for.
You are going to have to pay fees to refinance and your loan is only a year old. It is very unlikely that your credit imporved that much ina year.
You bought a house you could not afford (100% financing) when you were not ready (poor credit, no cash down).
It depends where you live but most areas are not doing well as far as appreciating real estate. Since you have no money of your own invested you have very little or no equity in the home.
Have you spoken directly to your lender to see if you can qualify for a lower interest rate?
avoid agents.
Can someone refinance their home for a 30 yr. with an LTV Lower than 100%?
To make it a little more simple...
My friend bought a home for $900,000 with a low 2 year yr fixed rate. Like the usual scams, after those 2 years his monthly payment went up to the point he couldn't afford it anymore. So now he has to leave the house..
Wha I was wondering is, if he can refinance it for a 30 yr fixed??or any suggestions?
His loan amt: ~ $950,000
Home value~ $800,000
is he eligable to refinance for a fixed rate , or will it be better to let go??
He's in trouble either way. Was the mortgage a scam, no, but that's an entirely different subject. The problem your friend is in right now is not that different from thousands of others. He cannot refinance since is loan to value ratio is well over 100%, if he walks away, he's damaged his credit for at least 2-3 years. Maybe he has assets he can use to put down to get his LTV down. The only other suggestion is has your friend called the lender to discuss the situation?
That being said, in order to do a refinance and the appraisal comes up short, the person refinancing would have to come up with the difference. Either that or come up with some type of $150K improvement(s) to the property.
Yes, the home can be refinanced for the current value so long as the owner can cover the balance owed on the origional loan. So he needs to come up with $150,000 in cash to make this happen.
If you were a lender, would you lend a person an extra $150,000 more than his house is worth?
You wouldn't be in business long if you did that.
There was no scam to his loan--he knew it would rise after 2 years. He's just caught in the pinch, as the housing bubble deflates. He probably lied a little about his income, too, to get that loan.
When buying a home well below market value what is the best way to get the equity out?
Lets say you buy a home for $100,000 thats worth $200,000, what is the most reliable, cost effective, and efficient method to pull out the equity into cash? What is the guaranteed way to do this if possible? Is it possible at closing, or a HELOC after closing, or cash from the seller, or a cash out refinance? most importantly, it has to be legal. thanks
Cash out refi is the way to go. Otherwise you are going to have a tax liability for the $100,000. I have done this a couple of times and it works well. Its legal and easy. Check to make sure that your refi expenses are low. There is a possibility that you could realize a greater return from selling the house. But... that means no brokers fees, a good contract specifying split of costs with the buyer and a good position on your tax situation. Good luck!
Unless you have had an appraisal where YOU HIRE the appraiser, you really have no idea of what that particular home is worth.
If it was that far below market...it would have already been sold.
That is why those people that are "We Buy Ugly Houses" buy then sell.
refinancing what the bank calls a second home, is it possible to get 100% financing? ?
I bought a house in Georgia on what I thought was a fixed rate loan. It was 2 years in october that i've owned the home. It goes adjustable on the december payment. My husband and I moved back to oregon for his business and have some friends staying in our house in georgia paying a little bit of rent. I tried refinancing with a few companies but when we told them we live in oregon now (but rent here, not own) they still said that the house in Georgia was a secondary residence and could only refinance for 80% of the loan. The house doesn't value high enough to make an 80% loan work as we have not even touched principle on the loan yet. I'm stressing because we can't afford this for much longer. and we can't sell it right now, we already tried. Does anybody know if it is possible to get 100% refinancing on a second home or any of the government programs that are helping homeowners out that would work in this scenario? thank you so much for any advice you might have.
Second homes/ investment property are treated completely different then primary home loans,
Refinancing my home?
I am nervous, I just purchased my first home. I did 100% finance. I noticed that home value is going down, will I be able to refinance after 6mos or 1 year. The way things are looking know I am scared that the value of my home might not go up.
You're home is your home first. It is an investment second. Most likely 6 months to a year down the road you will not have too much equity, if any. Especially if you are on an interst only loan. The first few years of any 30 year loan is mostly interest anyway, meaning your principal balance will only be slightly dropping.
Now was a smart time to buy with home prices as low as they are, but expect to be in the home for a few years before you can see any realy increase in value.
5 yr interest only ARM (100% financing Signed: 9/2006) - West LA - Refinance now?
I have a couple questions.
First, I got a 5 yr interest only loan (80/20 100% financing) in September 2006. I live in El Segundo, California. (Westside of LA) I purchased my home for $740K. Zillow and other 'rough estimate sites' have it currently at $810K. Avg home prices in the area have dropped 5-10%. We think we will be in the home for at least another 3 years. Maybe 4-5 years. Given that, would refinancing to a fixed rate loan right now make sense? Any advice would be great.
Two: In the next 18-24 months we would need to add a bedroom/bath (500 or so sq feet) onto our 2 bedroom/1.5 bath 1400sq ft ranch style home. We have plans drawn up and an estimate of $80K to do the one story add on. Should I wait to refinance until we need to start the remodel? If I take the architect approved plans into the bank, will the bank allow me to refinance for the current value of our home (1400 sq ft) + the estimated value of the addition (500 sq ft).
What's the smartest way to proceed?
Thanks
YES! If you're eligible do it ASAP.
Part two - you're not going to like my answer. I would not put more money in my house until I had money in the bank. If you can re-fi and save $40,000 a year then you can put on that addition. You're neck deep in debt and want to take on more?
That's scares me.