Confused about “Make home Affordable” refinance option?
by Mortgage Rates on Thursday, November 4th, 2010 | 2 Comments
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Go to a few – 5 or more) mortgage lenders (not banks) and establish a relationship with someone at each. Let them know that if they can get you down to $X/month, you’ll sign immediately. But that you understand that rates are much too high for now, and that you’re looking for a call when rates drop to the point you want. (I’m paying 4.875% fixed for a 30 year mortgage – the lender called me [a few years ago, not recently] and asked if he should lock me in – I said yes, and stopped by that evening to sign the papers. The rate was that low for less than an hour, and this was about 14 months after I’d first spoken to him. And he knows that if he can lower my payment by another $100/month, all he has to do is call, and he makes his commission.)
I would suggest instead of applying for a Home Affordable Refinance you apply for a Home Affordable Modification.
Under the guidelines of the program you may obtain an interest reduced to 2% and bring your payment as low as 31% of your current income.
They are other programs depending on the investor or your loan and your lender. They are some guidelines and requirements for each program, you can contact The Helpful Hands Foundation, Non-Profit Organization at 787-408-5996 they will give you a free phone consultation and may be able to help you with your situation.