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RYF! Making home affordable program - Kiva - 04-03-2009
ok, probably not RYF worthy, but I just got off the phone with Countrywide. We're probably going to do the refi program. The guy said they get rates next tuesday and are collecting potential applicants right now. Some details:
needs to be freddie or fannie backed loan (see http://www.makinghomeaffordable.gov/)
loans up to 105% LTV
no PMI
NO appraisal fee
if you're current on payments, no income verification (that's what the guy said...i didn't think that was right)
Can be re-cast in the future (FHA loans cannot)
rates are approx 0.25% over market rate
my wife and I are actually in decent shape with this loan, but we were going to get forced into an FHA refi w/ PMI and no ability to recast. This will help us out.
We are very thankful that our jobs are generally safe....very grateful...
kiva
Re: RYF! Making home affordable program - mikebw - 04-03-2009
Are you aware that Bank of America will be taking over Countrywide soon? I don't know how this will change anything, just thought I would mention it.
I have a 2nd mortgage with Countrywide, (my 1st is with Bank of America) and I am not sure what I should do to try an refinance. Do you suppose once they do merge my loans will just stay the same until I ask to change them?
It would be great if I could get both on a fixed rate since they are both ARM's right now, although the rates are low and I can afford it.
Re: RYF! Making home affordable program - 3d - 04-03-2009
I looked into it last month when this was in the news. If i remember correctly,,, there were 4 (or was it 5?) very specific requirements that need to be met for you to qualify as being in "Financial Hardship".
The first and biggest requirement was that your current monthly mortgage payment must be more than 31% of your household income.
Another one is that you must be working. And yet another is that the new mortgage must not be worth more than what the current market value of the property is worth. Borrowers will have to provide their most recent tax return and two pay stubs. There might be others...
That "31%" requirement I listed above knocked me right out of the running so i stopped looking into it...
Do you have more concrete info?
*edit*
Oops. Duh. That .Gov link above is as concrete as it gets. You will have to show last year's tax return and pay stubs so I'm not sure why the person on the phone said it wasn't required. Maybe it's not required now during the application process. But will be required later :dunno:
Re: RYF! Making home affordable program - mrbigstuff - 04-03-2009
I cannot find the reference on the FAQ, but I have read elsewhere that if one owes (as I do) less than 80% of the mortgage, you are SOL.
Re: RYF! Making home affordable program - mikebw - 04-03-2009
"the new mortgage must not be worth more than what the current market value of the property is worth."
For me that might be close. I would guess the value has dropped about 15%, maybe more, and I don't think we have paid off that much yet.
The 31% figure would also be close I think.
Re: RYF! Making home affordable program - Kiva - 04-03-2009
3d wrote:
I looked into it last month when this was in the news. If i remember correctly,,, there were 4 (or was it 5?) very specific requirements that need to be met for you to qualify as being in "Financial Hardship".
The first and biggest requirement was that your current monthly mortgage payment must be more than 31% of your household income.
Another one is that you must be working. And yet another is that the new mortgage must not be worth more than what the current market value of the property is worth. Borrowers will have to provide their most recent tax return and two pay stubs. There might be others...
That "31%" requirement I listed above knocked me right out of the running so i stopped looking into it...
Do you have more concrete info?
check out the link...i think it does some eligibility stuff. The 31% thing is for the loan modifications. The refinance is a totally different story. The loan mod program will comb through your finances very thoroughly. The refi - not so much. I specificaly told the guy "I'm afraid we make too much money." and he said, "that's for the mod program...the refi is not income-dependent. You just have to be current on your payments. " We'll see...
I did know about that bofa thing...i don't think it will make a difference. I'll be sure to ask.
I have heard that if you owe less than 80%, the program is not for you. I think it's designed for people that aren't totally underwater (they should look at the loan mod program), but the market has eaten up too much equity so as to prevent them from doing a conventional loan. The FHA loans are great, but they have PMI and they can't be re-cast down the line. With this program, we plan on keeping this house for a while at that low rate. If we wanted to do a balloon payment to get the payment down, we could. Can't do that with a FHA.
kiva
Re: RYF! Making home affordable program - mrbigstuff - 04-03-2009
from the FAQ:
You believe that the amount you owe on your first mortgage is about the same or slightly less than the current value of your house,
nothing about the 80% but I did read that when this was first introduced about a month ago.
14.
Will I need mortgage insurance?
If your existing loan has private mortgage insurance, you will need the same amount of insurance coverage for the refinanced loan. If your existing loan does not have private mortgage insurance it will not be required as part of the Home Affordable Refinance.
also, doesn't say that you must take the PMI, but again the 80% creeps into the picture because PMI was not required of those putting 20% or more down on the original mortgage. again, that is me :-(
Re: RYF! Making home affordable program - Seacrest - 04-03-2009
Kiva wrote:Why are posts from 2005 bubbling (pun intended) back up to the top?
ok, probably not RYF worthy, but I just got off the phone with Countrywide.
Re: RYF! Making home affordable program - Kiva - 04-03-2009
Seacrest wrote:Why are posts from 2005 bubbling (pun intended) back up to the top?
[quote=Kiva]
ok, probably not RYF worthy, but I just got off the phone with Countrywide.
I have a feeling this is funny, but i'm too dense to get it...explain? :dunno:
also, thanks for the clarification on the PMI issue...that makes sense..
kiva
Re: RYF! Making home affordable program - Seacrest - 04-03-2009
CW was a major player (or culprit) in the housing bubble, and their former CEO quite infamous. Kind of got overshadowed by AIG, of course, but them's the breaks. I had no idea they were still in business and using the "Countrywide" name, so your post tickled me a little.