CNN just posted

[cjbory]

Obama will expand the mortgage rescue to allow more Homeowners to refinance mortgages. I guess they are going to up the Value to Debt ratio so more people can qualify. I have heard 125%.

Any one knows anything.

[cjbory]

Is official.. 125% loan to Value. I think i qualify for that. Any one knows the interest rate they are giving?

[Melanie702]

Originally Posted by cjbory

Is official.. 125% loan to Value. I think i qualify for that. Any one knows the interest rate they are giving?

I don't know, sorry, but just found it on CNN. Here is the link
Obama extends mortgage refinancing program - Jul. 1, 2009

[srl520]

So I call my mortgage lender and ask him if I could qualify for this refy. He says yes, but he states no banks are going to lend any money unless there is PMI paid. Old rule is 20% equity for no PMI.
Does anyone no what is the real deal here? Obama makes these new programs, but do the banks have to lend?

[md37793]

The rule for the Refis (assuming your investor is Fannie or Freddie). is that PMI is only required if it is in place on the current mortgage that is being refinanced. If it is not, than no PMI will be required on the new mortgage. If PMI is present, that the same amount of coverage is required on the new loan. As far as the 125% I do not know if this applies to freddie loans, but know that a lot of lenders went active with 125% LTV yesterday for Fannie Mae owned mortgages. Hope that helps.

[cjbory]

Another rumor i heard..

In order to get the best rate available you’ll have to refi to a 15 year loan. I think the 15-year loan is at mid 4% and the 30-year mid 5%. That does not help me much. My current loan is 6.25% 30 years fixed. I cannot refi for a 15 year because my payments will go up and the 30 years refi is less than a 1% difference.

[lecia11]

I just called BofA. It's only for Freddie Mac and Fannie Mae loans.

[srl520]

Thanks for the response to my question.

I contacted my local lender that has been very helpful and honest. He states that even though this is the new plan to refi with 125%, there isn't any bank that is going to step up to the plate and take the risk right now. Also, as stated above, the interest rates are not going to be much better then what I already have.

[faith]

Just because Obama said doesn't mean it will happen. Remember none of his promises during the election happens that's why his rate is going down. Besides he has no authority to force the lenders to do what he wants to do, The Congress and the Senate has the power, Obama doesn't, the power to make promises yes but not to fulfill it. That's my beef in this current administration. And if you write him a letter, he will not respond, the computer will respond he is busy to answer your letter. But I know when I wrote Senator McCain a letter he responded twice.