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Step 1
Eligibility to Refinance Your Mortgage to a Lower Interest Rate
• You own the home.
• Fannie Mae or Freddie Mac owns or securitized the loan. Here is how to determine this criteria.
For Fannie Mae,
1-800-732-6653
www.fanniemae.com/loanlookup
Freddie Mac
1-800-373-3353
www.freddiemac.com/mymortgage
• You are current on your mortgage payments.
• The amount you owe on your first mortgage is less than the current value of your house.
• You will be able to afford the new mortgage payments.
• The lower monthly payments will improve the long term affordability of your mortgage. -
Step 2
Application Process to Refinance Your Mortgage
• Contact your mortgage lender to discuss the ‘Home Affordable Refinance’ application process.
• Most banks and mortgage brokers are approved to work with Fannie Mae and Freddie Mac.
• As of April 4, 2009, borrowers who have loans that are owned or securitized by Fannie Mae may also apply through any Fannie Mae approved lender.
• Ask the lender you choose if it is authorized to provide a Home Affordable Refinance. -
Step 3
Necessary Documents for Refinancing Your Mortgage
• Gather recent pay stubs for all borrowers on the home mortgage loan.
• Have you last year’s income tax return available.
• Pull together information on any home equity loan or second mortgage on the house.
• Get printouts for bank account balances.
• Know the credit card provider, account number, and minimum payment due for all active credit card accounts.
• Have documentation with account number, balance, and monthly payments on other debts such as student loans and car loans. -
Step 4
Mortgage Interest Rates
• The interest rate to refinance your mortgage is based on market rates in effect at the time of the refinance.
• Ask for a ‘Good Faith Estimate’ from the lender showing any associated points and fees.
• Interest rates will vary across lenders and over time so do some research before deciding on the lender to refinance your mortgage with.
• Mortgage loans refinanced under this program will have no prepayment penalties or balloon payments.
- How to Refinance Fannie Mae and Freddie Mac Mortgage Loans
- How to Refinance Your Mortgage Using The Government Relief Program
- How to Qualify for Making Home Affordable Program
- How to Refinance a Mortgage with No Equity
- How to Determine Which Refinance Mortgage Programs Best Suits Your Home Mortgage Needs













Comments
georgelarson said
on 6/28/2009 UPDATE: Wanted to let everyone know that someone I know just finalized this transaction and received a finance rate of 2%, no closing costs, and will save $280 per month. THIS WORKS!!!!
momtchr said
on 5/8/2009 Much needed info and great tips. Thanks!
tracysmith159 said
on 5/8/2009 wonderful tips on refinacne your mortgage. I just bought my home and only have 5 1/2 percent interest. So I ended up paying only $100 more then rent a month and that includes property tax and insurance. Great time to buy or Refinance.
autumn1234567 said
on 4/21/2009 Really good tips on how to refinance your morgage and lower payments. I'm all about that! 5*
kittykat3 said
on 4/4/2009 These are excellent tips to help you refinance your mortgage and lower payments. 5*