Refinancing - FYI

As you know, I am not a mortgage rep but the refinancing information is important to know either for yourself or for someone you may know. There has been much talk recently about new refinancing options available for homeowners who are underwater. Being underwater means you owe more on your home than it is worth.

The most recent program is referred to as Home Affordable Refinance Program (HARP) 2.0. This program is open to borrowers whose mortgages are owned by either FNMA or Freddie Mac, which are conventional mortgage programs.

Under HARP 2.0, lenders will be able to waive the appraisal portion of the refinance and not be concerned about their loan to value (LTV). They will be able to take advantage of historically low interest rates and reduce their monthly payments.

At this time, lenders are preparing to open up this program. What you can do in the interim is figure out whether your loan will be eligible. Requirements for eligibility include:

• Your mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae

• Your original loan must have closed no later than May 2009.

• Your mortgage cannot have been previously refinanced under HARP.

• Your current loan-to-value ratio must be greater than 80%.

• Borrower must be current on the mortgage at the time of the refinance, with a good payment history for the past 12 months.