I listen to MPR a lot now. So I've been listening regarding the stimulus bill and the new proposal for turning around the mortgage crisis. I'm all for progress and I believe in Obama, so I'm pretty happy about both on a moral level.
And then, as part of the mortgage bill, they described this little benefit:
They want to adjust the rules to help homeowners who have "done the right thing" with their mortgage and who would like to refinance to take advantage of the current low rates, but find themselves "underwater" on their mortgages, or owing more than the house is now worth because of falling home values.
Which is us. We bought a house we could afford and put down over 20%. We are current with our payments. We would love to refinance into a better interest rate, but we owe more than what the house is currently worth.
The only caveat is that they will only be helping people whose mortgages are owned or secured by Frannie Mae or Freddie Mac.
Dammit!
For once, I thought we were actually going to be able to take advantage of a specific government program that isn't just built into the tax tables. They were describing me until we got to that part.
3 comments:
I'm hoping that it will help us too. Technically we are current with our mortgage even though the bank has it "under review" so our payments haven't been applied to our account. I'd really love a better rate. Why shouldn't responsible people get a little lower rate?
I think the Fannie/Freddy thing is seperate from the other one, isn't it? At least, I sure as heck hope it is. I heard them say something about $200 billion for them. I don't think the company you financed with should have anything to do with if you should get this help. I'll be keeping my fingers crossed for March 4th's announcement.
I figure I'll call them regardless and ask. I don't have much to lose, but the bank doesn't really either. We aren't asking for a reduction in the principle, just the rate. The house is already worth less than we owe, so it's not like the bank is suddenly aware that if we default, they won't get their money's worth. Plus, the payments come right out of my check now.
Call the bank and double check on this. I believe you can still get the benefit if your bank loan is insured by FM or others, which most actually are, even if they are through "your bank". Good luck
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