Home Affordable Refinance Program
Do Not Lose Your Home To Foreclosure
the Home Affordable Refinance Program, Fannie Mae and Freddie Mac will
allow the refinancing of mortgage loans that they own or that they placed
in mortgage backed securities
borrowers that are current on their mortgages but have been unable to take
advantage of today's lower interest rates because their homes have
decreased in value may now have the opportunity to refinance. (Back
You may be eligible if:
will give you a “Good Faith Estimate” that includes your new interest
rate, mortgage payment and the amount you will pay over the life of the
loan. Compare this to your current loan terms. If it is not an
improvement, refinancing may not be right for you and it may defeat the
Also consider that refinancing from an adjustable rate to a fixed rate loan or eliminating higher risk loan terms such as interest only payments or balloon payments may also provide long term stability.
should call your mortgage lender or servicer (the organization to whom you
make your monthly mortgage payments) and ask about the program. Both
Fannie Mae and Freddie Mac have established toll-free telephone numbers
and web submission processes to make this data available. Borrowers will
provide or enter information to determine if either agency owns or
securitized the loan. This information is not a guarantee of eligibility
for the refinance program, as other qualifying criteria must also be met.
information for Fannie Mae = 1-800-7FANNIE (8am to 8pm
EST) or http://www.fanniemae.com/loanlookup
information for Freddie Mac
loans will include those where the first 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.
long as the amount due on the first mortgage is less than 105% of the
value of the property, borrowers with more than one mortgage may be
eligible for a Home Affordable Refinance. Your eligibility will depend, in
part, on agreement by the lender that has your second mortgage remain in a
second position, and on your ability to meet the new payment terms on the
objective of the Home Affordable Refinance is to provide creditworthy
borrowers who have shown a commitment to paying their mortgage, the
opportunity to get into a mortgage with payments that are affordable today
and sustainable for the life of the loan. Borrowers whose mortgage
interest rates are much higher than the current
market rate should see an immediate reduction in their payments.
rate will be based on market rates in effect at the time of the refinance
and any associated points and fees quoted by the lender. Interest rates
may vary across lenders and over time as market rates adjust. The
refinanced loans will have no prepayment penalties or balloon payments.
objective of the Home Affordable Refinance is to help borrowers get into
more affordable loans. Refinancing will not reduce the principal amount
you owe to the first mortgage holder or any other debt you owe. However,
refinancing should save you money by reducing the amount of interest that
you pay over the life of the loan.
will not be allowed to get cash to pay other debts. However, borrowers
whose loans are owned or securitized by Fannie Mae may be eligible to
finance all closing costs and obtain a small amount of cash (2% of the
mortgage amount not to exceed $2,000) through the refinance if there is
sufficient equity. For borrowers whose loans are owned or securitized by
Freddie Mac, transaction costs (not to exceed $2,500) such as the cost of
an appraisal or title report, may be included in the refinanced amount.
should call your mortgage servicer or lender and ask about the Home
Affordable Refinance application process. The number is on your monthly
mortgage bill or coupon book. Please be patient. Lenders and servicers are
implementing the program now and it may take time before they are ready to
process all applications. In the meantime, it will help your lender and
speed up the application process if you gather some information and
documents before you call.
beginning April 4, 2009, borrowers whose loans are owned or securitized by
Fannie Mae may also apply through any Fannie Mae approved lender. Nearly
all major banks and mortgage brokers are approved to work with Fannie Me.
Ask the lender you choose if it is authorized to provide a Home Affordable
It will help your lender if you gather some information and documents before you call. You will need:
who are currently delinquent or have been 30 days overdue more than once
during the past 12 months will not qualify. You should contact your
servicer to see if a Home Affordable Modification is an option for you.
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.
program expires on June 10, 2010. Your refinance transaction must be
closed and funded on or before that date.
Foreclosure rescue scams – beware, beware
BEWARE OF FORECLOSURE RESCUE SCAMS – HELP IS FREE!
the following helpful tips in mind:
should never be a fee for assistance with or information about any aspects
of the Making Home Affordable Program. It is a US government program and
the government is not charging any fees for this program.
of any person or organization that asks you to pay an upfront fee in
exchange for a counseling service or modification of a delinquent loan. Do
not pay – walk away!
of anyone who says they can “save” your home if you sign or transfer
over the deed to your house. Do not sign over the deed to your property to
any organization or individual unless you are working directly with your
mortgage company to forgive your debt.
make your mortgage payments to anyone other than your mortgage company
without their approval.