Don’t let “No Equity” keep you from refinancing. With interest rates at historically low levels our phones have been ringing a bit more than usual. Honestly, in many cases, after being presented with all of the facts we are advising clients to save their money and pass on the refinance. Many times there’s just not enough savings to justify the expense of the refinance transaction. In most cases, home equity is non-existent and borrowers simply don’t have traditional options available to them to take advantage of a lower rate and monthly payment.
But wait, there may be hope for some of you! The Obama Administration rolled out the Making Home Affordable initiative last year and it was designed to help underwater borrowers take advantage of lower interest rates by allowing refinances without the need of a new appraisal. This is still available for Fannie Mae and Freddie Mac mortgages. This has nothing to do with your service provider (the lender sending you statements), but the investor behind the scenes you might not even know about. If your loan is with Fannie Mae, we might be able to help you. If your loan is with Freddie Mac, you’ll need to contact your existing lender to see if this refinance is available to you.