Subprime Mortgage ARM Refinancing Loan Help, Options & Advice
By Michele - Your Free Certified Home Mortgage Planner 
Mortgage Financing - How To Reduce Your Mortgage Payments - Stop Foreclosure - FHASecure Refinancing Info
Specialist planner for: Utah Hawaii Connecticut Alaska New Hampshire Massachusetts Rode Island Delaware Virginia Georgia Florida Michigan Kentucky Minnesota Missouri Nebraska New Mexico Arizona Wyoming
New Subprime Mortgages ARM Adjustable Rate Loan Refinancing Options
Mortgage loans that are currently eligible for a new plan developed by the Treasury Department and loan service providers are ARMs (Adjustable Rate Mortgages) with fixed-rate periods of three years or less (mostly 2/28s or 3/27s), originated between January 1, 2005 and July 31, 2007, that have an initial reset date scheduled for between January 1, 2008 and July 31, 2010. The new program applies only to loans held in securitized pools (which will be most loans). Loans held in portfolio by a financial institution are not covered by the plan. An individual lending institution may choose to adopt the plan’s principals or institute a more or less liberal version for portfolio loans. Some mortgage providers have already instituted in-house plans. If yours contacts you about one, by all means hear them out. Under the negotiated plan, homeowners will fall into three categories:
(1) Those who are able to continue to make their payments as contracted. These borrowers generally will be expected to keep their current mortgage or refinance the loan. Many subprime ARM loans were made to people with good credit who fell short of meeting the standards for prime mortgages because they made a smaller downpayment, did not want to document their income or assets, or needed high debt-to-income ratios to buy the home they wanted.
Because many subprime mortgage loan borrowers do have good credit, one Federal Reserve official has estimated that more than half of homeowners with subprime ARMs should be able to refinance into a less-costly loan by taking advantage of existing programs. In fact, many of these borrowers might now qualify for a prime mortgage having successfully met their mortgage obligations for a period of time. A number of mortgage options should be available for these homeowners. Because their current servicers may not offer all the available mortgage products, the homeowner may need to look outside their mortgage loan provider to have access to the greatest number of refinancing options.
(2) Homeowners that are determined can continue to make their mortgage payments so long as their interest rate stays the same. These are homeowners who may be eligible for a "quick" loan modification that could keep their existing mortgage rate in place for five years after an interest rate reset. Homeowners in this category must not be more than 30 days behind on payments and cannot have been more than 60 days delinquent in the last 12 months. Any current loan that has a loan-to value exceeding 97% would be considered ineligible for refinance into any available product.
Generally, category 3 homeowners must not be eligible for an FHASecure refinance (see below for more on this financing program). Homeowners in this category must also meet tests with respect to their FICO credit score (for instance, a FICO score under 660 that is less than 10% higher than the score when the loan was originated qualifies!). If the FICO test is not met, then an alternate analysis will be employed. The plan will apply only to first mortgages for borrowers who occupy the property as a primary residence andhave resets that would increase the mortgage payment by more than 10%. What if you have an equity line or other 2nd mortgage on the home? The guidelines say that providers of 2nd liens should agree to subordinate the loan to the new 1st trust, but they are not required to.
(3) Those who are already behind on their mortgage payments even before their first adjustment and FHASecure Refinancing Unfortunately, there is no present program available to these homeowners. Generally, they will be subject to "appropriate loss mitigation." They will be on their own to try to work with their servicer to try to get a loan modification, appeal for forbearance, opt for a short sale or simply succumb to foreclosure.
FHASecure Mortgage Refinancing PlanThe FHASecure refinancing plan is for those homeowners who do not fall within the parameters of the new refinancing plan listed above. For those who were current on their adjustable rate mortgage before a reset, but have since fallen behind, FHA has a new program called FHASecure that will allow borrowers to refinance non-FHA ARMs that ARMs that have reset, even if you are now in default. I f you find yoursel in this position check inot the FHASecure mortgage refinancing plan
More Mortgage & Loan Advice Articles
By Michele Jeppson Mortgage Loan Refinancing Consolidation Specialist |
Debt Consolidation - Mortgage Refinance Loans
Debt Consolidation - Mortgage Refinance Loans and Tax ... Debt consolidation loans and solutions to help reduce credit card debt and tax debt ... card debt consolidation programs and mortgage refinance specialists! Read more...
|
|
Michele's Mortgage Client Testimonial
Michele, I got your message last night and everything has gone smooth, we have our money and the closing was easy. Thanks to You and Karen for all your help we appreciate it very much. Also anyone I know who is refinancing or buying a home I will refer them directly to you. You guys did a perfect job and answered all our questions and made it very easy. Thanks again and have a great day. David M. in Utah Read more... |
|
|
|
More Home Mortgage & Loan Information
Subprime Mortgage Crisis:
Over 6 million bad risks have gotten the home mortgage financing they needed. No banker in his right mind would make this risky of a mortgage loan, but for the last few years the sane bankers have been hiding under their desks. As long as housing prices were jumping higher almost by the hour, the subprime mortgage holders pretty much managed their monthly payments, although there are stories out there in real estate land of people missing their first payment on a no-down-payment mortgage. People who ran into trouble could refinance the house and cover their payments that way, something that ceased to be possible when home prices went flat and began to move downward.
FHASecure Refinancing
Proffessional FHASecure Subprime ARM mortgage loan and debt consolidation advice from Michele Jeppson licensed for:
Utah Hawaii Connecticut Alaska New Hampshire Massachusetts Rode Island Delaware Virginia Georgia Florida Michigan Kentucky Minnesota Missouri Nebraska New Mexico Arizona Wyoming
|
|
