Speaking from the White House today, President Obama urged homeowners to refinance. Mortgage rates are at historical lows, and the government’s new Making Home Affordable plan has been set into motion, opening the door for millions of homeowners to refinance at a lower rate to reduce their monthly payments.
Obama noted that refinance activity has spiked recently: “We’ve already seen a substantial jump — 88 percent increase in refinancings over the last month.” At Zillow Mortgage Marketplace, we’ve seen it, too. Loan requests increased 164% in March vs. February, with more than 60% requesting a refinance loan.
If you are one of the 7-9 million people who could benefit from refinancing, make sure to check the most up-to-the minute mortgage rates, and then find out what rate you qualify for by submitting a loan request on Zillow Mortgage Marketplace to get personalized mortgage quotes from our network of thousands of lenders.
More info can be found at the official government Making Home Affordable website.
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Comments
44 Comments so far
Russell Losse
That is great what the president says. However we lock in on 5%. However our lender did go with that. When we went to closing, we had 5.75% FHA and the payment of $150.00 more than what we lock in on. Can this be done.
Nick Wilson
Russell, it sounds like you were the victim of an “Escrow Ambush”. I hope you refused to sign the documents and chose to work with a different lender. Depending on the state that you live in there should be a rescission period after signing the documents which would allow you to cancel the loan.
Fannie Mae HomeStyle Renovation Loan: Ideal For Investors | Phoenix Area Real Estate Blog
[...] PS - Pssst. Did you hear? President Obama said it was a great time to refinance. [...]
Diane Garske
I recently got a letter form Bennefical Finance, who is mortgage lender, that they are closing all offices, but will continue to service my loan. I went to check my credit report, and my loan is not listed in any of the three credit bureau’s. I called beneficial and they said they would look into it, and then sent me a letter and said they did not have anything to do with what shows up on my credit report. I have had this loan for 10 years, I am current on my payments, and want to know why or how I get it on my report. Usually people are trying get things off their reports. Do not understand. any insight would be much appreciated. Thx!
Angelina Bonaventure
Diane Garske. If you can call me so I can help you with this I will. I have a few client that is having a few issues with thier report. 954-864-2219
Debi
I refinanced last year to get out of a sub-prime 80/20 mortgage into a 30yr fixed at 6.75?. I want to refinance again because my house has dropped more than 15% in value and my monthly payment is going up because of taxes. I am told I have a GinnieMae mortgage with Countrywide (nightmare experience). No one will refinance me because I no longer have 20% equity in my house. What can I do? Where is my “bailout”?
Nick Wilson
Debi, you may be able to refinance to a 30 year fixed rate FHA mortgage. This should lower your payments since the FHA rates are in the 4’s. Submit a Zillow rate request to get a quote from a local lender.
Bree
I found out that i qualify for the Obama refinance plan. My mortgage is with wells fargo. They are offering a low rate since i have excellent credit but the closing fees are around $8000. Do I have to refinance through wells fargo since my loan is held by Freddie Mac? or can I go through someone else
Tera
We just got our loan last year with a 7% rate. We got a higher rate because though we have excellent credit, we didnt have a down payment. So it was better for us if we had the bank pay the PMI and we got a higher rate.
So does that mean we wont be able to qualify for the Obama refi plan? Just because we didnt put a down payment down on the house??? Our loan is owned by Fannie Mae.
EDUARDO SIERRA
i am mexican and my 3 son americans, i have 100 000 dlls and want to buy a home in Orlando Dl but no body want to give me a 50 000 loan to buy a home 150 000 dlls value, i think there are a bad banquers o bad policies in usa about home loans, since the loan for 50k will be prety much insured i wonder why not to lend such amount of money, besides many houses are owned already buy banks and whith out manteniance are going to put the price of the hose lower
President Obama Says It Is A Good Time To Refinance | Arizona Mortgage Team
[...] good friends (and uber-smart, I’m-lucky-to-know-her-type-of-person) originally posted this on Zillow’s mortgage blog, and since she said it so well… I figured that there was no need for me to re-say it. Thanks [...]
Cassandra
Bree
You don’t have to refinance with Wells Fargo. You can go anywhere you’d like and get similar rates without all the fees. $8000 seems like a lot but it depends on your loan amount and what the fees include. Are you including taxes and insurance? What rate are you getting?
Cassandra
Emily
That’s all great for people that have equity in their homes. But what about those who owe more than their house is worth for a rate at 6.5% and yet because we can BARELY afford the mortgage, are not eligible for any kind of re-writing? Thanks a lot government.
Joshua A. Lerette
Bree, contact a mortgage broker, they will be able to help you with this. Lower rate and lower fees most likely.
Tera, right now this program is not an option. Give it some time, kinks are being worked out. May 4th is the announced date that borrowers with MI will be able to utilize this program as well.
Debi, since you have a Ginne Mae loan (FHA) you may qualify to streamline refinance your loan down to rates lower than the rates with the program we are discussing. Be happy about that!
Emily, this program may be perfect for you. The glass is half full, not half empty. This program is designed for borrowers that have been turned down before due to shrinking equity and depreciating home values. It allows home owners to refinance up to a 105% loan to value. Keep your head up, the government has seen that we are in a major crisis and big things need to be done.
Cheri
Under the new plan Fannie May existing loans cover 100% closing costs.However,Freddy Mac (mine)are only 50% covered.On my WaMu/Chase loan,I needed $2,500 plus $750 application to refinance my first.THEY WOULD NO TOUCH MY SECOND.Go figure,I am not even upside down..yet.Oh,by the way my payment was ALMOST exactly the same.Let’s see,bank’s borrow at .50,mark it up to 4.8 (for me)don’t take my second…Lot’s of help,huh?Maybe the government should step in and tell banks how little to make on us!!They make far too much on all this!!!Let’s NOT bail out any more crooked lending institutions,please!!
Colin
Bree
Cassandra is wrong.. I work as a manager at a broker… and Wells came in to talk to us yesterday, under the Wells Fargo, Home Refinance Affordability program if you have a Freddie Mac loan and have lost your equity(20% down) but are still under 105% LTV.. (CLTVs are ignored - if there’s a second from another lender, the other lender must agree to subordinate) THAN YOU HAVE TO GO BACK THRU WELLS. FREDDIE MAC IS REQUIRING ALL OF THEIR LOANS THAT ARE BETWEEN 80%-105% ltvS WITH NO PMI TO GO BACK THROUGH THE SAME LENDER.
SO YOU CANNOT TAKE IT TO ANOTHER LENDER LIKE CASSANDRA IS SAYING. i HAVE THE GUIDELINES EMAILED AND PRINTED AT MY OFFICE. THE 8000 IN FEES IS HIGH, MY OFFICE COULD DO IT FOR ABOUT 5K INCLUDES ALL FEES. THE OTHER CATCH IN THIS NEW WELLS/OBAMA PROGRAM IS ONLY 2500 CAN BE ROLLED INTO THE LOAN.
COLIN@TROJANHOMELOANS.COM IF YOU HAVE ANY QUESTIONS.
SHO
So what happens under this new plan for refinance if you are current on you mrtg payments and have always been but had to file bankruptcy due to other circumstances. The house is now upside down at a good rate but for an interest only loan that is going nowhere fast. How the heck do you get out of this mess….or can you?????? The mrtgs were no included in the BK of course
Nicole
How much equity do I need in my home in order to take advantage of a lower rate? My credit score is excellent, however I purhased my home with nothing down and therefore equity is not yet at even 10%. Does this disqualify me from refinancing?
Tera
Nicole - I’m in the same boat as you. I’m wondering the same thing! I really hope we qualify, a lower payment would really help. We are trying so hard to pay off all our debt right now.
Summer
I have two mortgages… Adjustable rate(countrywide, 2nd a personal loan)I had difficulty to pay my loan the past couple months…I purchaced my home for 224k now the value is at 126k .can I refinance under the Obama program.
Mavis
Two years ago I acquired a loan on a piece of property with IndyMac. It is a five years loan with a variable interest rate that will baloon in five years. Five months ago when the government took over I inquired about refinancing an getting a fix rate. where it would be possible to pay toward the principal. The answer that I received from IndyMac FSB was that I must default first. If were dealing with a fix rate where I didn’t have to worry about when or if it’ll be raised life would certainly be easier. Twice within the past two years my rate has been changed. Any suggestion on where I refinance at a reasonable a fix rate.
Darla
Anything out there for those who have lost their jobs due to the recent muck up. Starting a freelance business, keep-up with financial obligations?
Trev
I currently have a 6.25% 30-year mortgage on my primary residence and I’m interested in refinancing, but I’m anticipating difficulties due to the recent dip in housing values. I no longer have 80% loan-to-value equity (although we put 20% down) and my loan is not held by Fannie or Freddie so I don’t qualify for the government refi program. Everything else checks out; excellent credit, housing costs are less than 32% of gross income,etc.. My bank is not interested in modifying since I’m not in financial trouble and they won’t refi without a favorable appraisal (80-85% LTV). Any suggestions or information for my situation?
Thank you.
Nick
Hi,
I am currently upside down so I can’t refinance and the lender has refused to modify my loan because I am not behind on my payments. What can I do to get a lower rate and payment?
Nick Wilson
You need to speak to a HUD approved counselor. Visit http://www.makinghomeaffordable.gov/counselor.html to find a counselor in your area. Do not speak to anyone who tries to charge you an upfront fee for advice.
cecile
Please let Mr Obama know that it is all bogus and just words
I have a 1st mortgage for 6.8 % and a 2nd at 10.85 and no one will touch my loan to refi.
they all tell me that low interest is great if I “qualify” wich means that I have to be in foreclosure or close to it. That means 3 or more month behind on my mortgage. How does that make sence Mr. Obama
maybe we need to really know what that means to the consumer with high interest and no where to go
Nick Wilson
Cecile, did you speak with a HUD counselor? Were you looking to refinance or receive a modification?
The qualifications for a refinance do not include being in foreclosure or close to it. If that’s what your lender has told you, then you are being lied to. Please contact a HUD approved cousnelor to help you find a loan professional who can assist you.
The main roadblock that I’ve seen with this program so far is getting the owners of second liens to agree with resubordination. This is something that the government is looking to rectify (was in the news this week).
Susan
What about those of us who had to file bankruptcy but did not include the home in the proceedings? I have not been late on my mortgage ever and otherwise qualify for a refi, but the bank says I don’t qualify for any of the programs because I filed bakruptcy.
Nick Wilson
Susan, you may be eligible. In order to determine what solutions are availbable to you please contact a HUD approved counselor at 1-888-995-HOPE (4673). Remember, do not talk to anyone who offers advice for an upfront fee.
kevin monahan
Nick can u tell me why my comment was deleted??Am i aloud to give advice to people who may not know what to do!?i have been using zillow for awhile but never got in to conversations and think that this is a good way to give people valuable info that they need! In this time of crisis i think it’s important for every to come together and share any knowledge they may have!and also get information i may be able to use?!
please advise, thanks
Nick Wilson
Kevin, I have no idea why your comment was deleted. I do not work for Zillow and I’m not a moderator for their comment threads. However, I do agree that it is good for people to come together and share knowledge. I would recommend providing your advice right here on the comment thread.
kevin monahan
Nick, ok thank you! i am sorry about the mix up as it does seem that you are a big part of the comments and would easily be looked at as a moderator! However i will continue to share info on the comment thread per your recommendation and my wanting to help! Thanks again!!
Camille
For the past couple of months I have been looking for a bank to REFi with. So far NO one wants to touch us. All we want to do is what that balance is. For we are looking at a baloon payment in Oct.
The wrost of all this is that we don’t owe every TOM DICK and JANE any money other that the house.
I also found out that the Pres.O plan called HOPE only help 29 families. Can you believe that!!!And all out of our tax dollars to boot. As for closing cost it is normally 3 percent of the amt. refi. any thing over that is nuts. And if you go through a broker they will tag you for more money. Deal with the banks or credit unions only their fees are a lot less. I know this from when I was tring to sell this home that we are now tring to refi. And to say you self a littls also ask the lender if you can carry you own escrow account why should the bank make any more money off of us! I know you can carry your own escrow acct. for I’m doing it right now!!
Good luck to everyone. For I know we all need it including meself.
Nick Wilson
Camille, a couple of things: The first is that the Obama plan has certainly helped more than 29 families. I’m not sure where you get your statistical data from but it is incorrect. In my company alone, we’ve funded over 29 refinances under the Home Affordability plan. The second is there must be something else going on with your refinance that the banks will not approve your loan. Have they given you a reason why you’re declined? Lenders are legally obligated to provide a reason for turning down your loan. I’m not sure how the bank makes more money off of you by collecting your property taxes and insurance and then paying them for you. However, all banks charge a fee to waive escrows, so if you go that route, then you are paying the banks more money.
Sharon
Is there a program for someone who has been current on their mortgage payments, but would like to take advantage of the low interest rates..(1st mortgage is at 6.75%; 2nd mortgage at 9.75%), but LTV is at 135%???
Sharon
Regarding the situation above, additional information: 1st mortgage is with BOA and is securitized by Fannie Mae and 2nd is held by a local credit union. BOA has already turned me down because of the LTV, and said that they were NOT up and running with the Modification program, and to visit their website for updates. All this was done the first part of April.
kevin monahan
sharon,
yes there is!let me ask you a question, have you had any type of hardship in the past year but stilled stayed current on your payments?
Sharon
Yes Kevin I have had a hardship! My husband was laid off from his job at AAA travel club of 15 years on March 30th. We have filed for unemployment and received our first check this week.
Previously, our monthly gross income to housing expenses were right at 32%, and I suspect now that rate is a lot higher.
Thanks!
kevin monahan
Sharon,
I am sorry to hear that! That is more common then uncommon in these hard times!
However there is a solution! I know that you said that you called your bank and they have not come out with a modification program yet! That was about a month ago you called, there are a lot of new developments in a month, especially with all of the pressure they are enduring now! The last thing a lender wants is for you the home owner to go into foreclosure or even start becoming delinquent on your payments!! So i am sure that they are accepting loan modifications by now!
i want you to know a statistic, and all stats are different however they are all fairly close; 90% of all borrowers that call on their own to obtain a modification are being denied! Even if they are the prime example on why lenders came out with loan mods, and the reason why is simple, not all borrowers have enough knowledge on how it all works! My suggestion for you is to contact a specialist (consultant, advisor or loan mod company) doesn’t really matter just as long as they have the knowledge to guide you through!! I can’t warn you enough on how many predatory companies there are so be careful! You can click my name on this comments thread and it would bring you to my website! You can click the tab that Sais “contact us” all my info is there! Email me and i can direct you or even make a call for you to see if they are doing work out agreements yet!!?? That’s the best I can do or advise in your position!
Sharon
Thank you so much Kevin! I WILL go to your website and email you for some comprehensive direction. And, your advise is the best I’ve gotten in awhile. I greatly appreciate it, because I am familiar with predatory lending and that is why I have taken it upon myself to research the President’s plan on my own and make sure I am familiar with all the details. But, now it seems as if I have come to a dead end, with no answers and no relief…You will be hearing from me!! thanks again from sunny florida!
kevin monahan
Sharon,
Another thing i wanted you to know! all lenders have loss mitigation and have done Loan modifications however they where only for VERY strict circumstances! Example; A borrower that has been with thir lender for 5yrs and never missed a payment or been delinquent grows terminally ill and now there income has dropped 50% , well its common knowledge that they are NOT going to be able to afford their payments anymore so ultimately the bank has NO choice but to modify the borrowers loan in order to prevent foreclosure! With the banking crisis so bad they had to use the loss mitigation department for A lot more hardships then that!
Best regards
kevin monahan
Sharon,
Thank you!!
Jack Hergenroeder
I am a loan officer in the state of Md and have been doing well on FHA and Va refi’s as well as reverse mortgages for people feel free to contact me I will be happy to help you
Jack Hergenroeder
you can contact me at my email address jhergenroeder@greatoaklending.com