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REFINANCING YOUR HOME

You owe it yourself to at least ‘look into’ refinancing your home. Refinancing will make sense if you are thinking about it for the right reasons and at the right time. Reliable Mortgage can help you decide if refinancing is the best option for you right now. If it is, we will find the best program and rate for you. If not, you'll get the straight truth.

Key Reasons to Refinance...........

  • Save more money - Interest rates are still low. Your monthly payments will be reduced if you get a low rate or when your loan term is extended.
  • Convert an ARM to a fixed rate mortgage - Lock in a low rate. Repay the loan with stable payments.
  • Eliminate PMI - If your current loan balance is below 80%, refinance and eliminate private mortgage insurance.
  • Pay down your mortgage quickly - Shorten the length of your mortgage by reducing the loan term. Monthly payments will go up, but you can save more in the overall interest payment. And, you'll be debt free in a shorter time.
  • Extra cash now - If you have enough home equity, borrow more than the current loan balance and pay off credit card balances with the extra cash. Mortgage interest is deductible. Credit card interest is not.
  • Consolidate two loans - You can consolidate first and second mortgages if there's enough equity (due to high appreciation) and refinance into a single first mortgage. You'll most likely have a lower monthly payment.

RELIABLE MORTGAGE REFINANCE LOAN PROGRAMS

HARP 2.0 (HOME AFFORDABLE REFINANCE PROGRAM)

This Refinance program is a conventional loan designed for homeowners to take advantage of today’s record low interest even if the mortgage is “underwater”, or the loan balance is higher than the value of the property. Eligible properties include single family residences, condos, townhouses, and multiunit properties up to 4 units. Additionally, second (vacation) homes, investment properties, and loans with current private mortgage insurance (PMI) are also eligible.

You may be eligible for HARP if you meet all of the following criteria:

  1. The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
  2. The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
  3. The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009. The current loan-to-value (LTV) ratio must be greater than 80%.
  4. The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.

Check to see if you have a Fannie Mae loan. Check to see if you have a Freddie Mac loan.

IMPORTANT: If it is determined via the lookup tools above, your property is not Fannie Mae or Freddie Mac owned, then it is not eligible for the HARP 2.0 refinance program. Call us with any questions you may have regarding this loan program. (612-372-5000)

FHA REFINANCE: STREAMLINED REFINANCING

If you have a FHA loan and are current on mortgage payments, an FHA streamline loan may be right for you. The primary advantage of this program is one can refinance without an appraisal so it matters not if the house is currently “underwater”, or is worth less than what is owed on the property.

This refinancing option is considered ‘streamlined’ because it allows you to reduce the interest rate on your current home loan quickly and WITHOUT AN APPRAISAL.

FHA Streamlined Refinance also cuts down on the amount of paperwork that must be completed by your lender saving you valuable time and money.

In order to qualify for a Streamlined Refinance your original (CURRENT) home loan must be an FHA loan in good standing and the refinance must lower your monthly interest payments. This type of refinancing option reduces your monthly expenses by lowering your payments, but there is no option to receive cash back. This works well for people who are in good financial standing with no significant debt because it allows you a little extra money each month that can be put to good use elsewhere.

Call us to see if a Streamlined Refinance is in your best interest. (612-372-5000)