Home Countrywide - Loan Refinance program highlights and must know details

Some of the programs designed to avoid foreclosure are:

1. Temporary delay in the payments
2. Loan modification program
3. Loan Refinance program

Here are some of the highlights and must know details about the Loan Refinance program

Eligibility: You maybe eligible if:

• You are the owner occupant of a one to four unit home
• The loan on your property is owned or securitized by Fannie Mae or Freddie Mac (Don't know? See below),
• At the time you apply, you are current on your mortgage payments (current means that you haven’t been more than 30-days late on your mortgage payment in the last 12 months or, if you have had the loan for less than 12 months, you have never missed a payment),
• 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,
• You have income sufficient to support the new mortgage payments, and
• The refinance improves the long term affordability or stability of your loan.

Find out if your loan is thru Fannie Mae or Freddie Mac:
For Fannie Mae,

• 1-800-7FANNIE (8am to 8pm EST).
• www.fanniemae.com/loanlookup

Freddie Mac

• 1-800-FREDDIE (8am to 8pm EST)
• www.freddiemac.com/mymortgage

Qualification based on property worth:

• Eligible loans will include those where the first mortgage(Even if you have a second mortgage) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less on your first mortgage you may qualify. The current value of your property will be determined after you apply to refinance.

What will be the interest rate:

• The interest rate will be the market interest rate at the time of refinance.

Any cash outs:

• No, except for closing costs in some cases.

How do I apply:

• Call you lender or any Fannie Mae approved lender is Fannie Mae owns your loan

Documentation that I will need:

• Information about the monthly gross (before tax) income of all the borrowers on your loan, including recent pay stubs if you receive them or documentation of income you receive from other sources.
• Your most recent income tax return.
• Information about any second mortgage on the house.
• Account balances and minimum monthly payments due on all of your credit cards.
• Account balances and monthly payments on all your other debts such as student loans and car loans.

What about 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.

What is the end date for this program:

• The program expires on June 10, 2010. Your refinance transaction must be closed and funded on or before that date.