Refinance Your Home

For the homeowner who is looking to refinance their current residence, vacation home or investment property, many loan programs are available.  These programs may be offered by FHA or VA, or through conventional means. The purpose of the refinance may be to lower the current interest rate and/or obtain cash back, given sufficient equity in the home to do so.  FHA/VA are government-sponsored loans, while conventional lenders finance the mortgage through the secondary market, known as Fannie Mae or Freddie Mac.

FHA & VA offer a “streamline” refinance option for those homeowners looking to refinance an existing FHA or VA loan without any cash back from the transaction.  Both FHA and VA have dramatically simplified the refinance process under “streamline” conditions.  In most cases, credit and income qualifying is not required.  Additionally, a new appraisal may not be required under streamline guidelines.

The loan products, for  FHA, VA & conventional, may include either an Adjustable Rate Mortgage or a Fixed-rate loan. Most loans are fully amortizing, while some may offer interest-only payment features.  The rate, term and maximum amount of financing available will vary based on individual circumstances.

Home Affordable Refinance Program (HARP):

Following the passage of the American Recovery & Reinvestment Act, one aspect of this monumental package includes expanded refinance options for the homeowner who is capable of making payments, yet hurt by falling home prices.  “HARP” allows for a first-mortgage refinance up to 125% loan to value, without requiring private mortgage insurance on the new loan.  If you have a second mortgage on the home, and the existing second mortgage lender will agree to subordinate to the new first mortgage, there is no limit as to the combined loan-to-value on the home.  The current loan MUST be serviced by Fannie Mae or Freddie Mac to qualify.  There is no minimum credit score required.  The program is available to primary occupants, as well as second home users AND investors.  Other standard credit criteria will apply, with rates and terms based on individual circumstances.  In order to determine if your loan is currently serviced by either organization, you may call your current lender or go to the following links:

• Fannie Mae link: www.fanniemae.com
• Freddie Mac link: www.freddiemac.com

The maximum loan amount, in Maricopa County, is $417,000 (applies only to the new first mortgage balance to be created under HARP guidelines).