Making Home Affordable Program

The Obama Administration unveiled the final details of its "Making Home Affordable Program," which is designed to help up to nine million American families refinance or modify their home loans to a payment that is affordable now and into the future. One of the initiatives in this program is aimed at helping responsible homeowners refinance their loans to take advantage of historically low interest rates. Here are some common questions and answers about the Refinancing Initiative in the program:

Who is eligible?
You may be eligible if:

• You own and currently occupy a one- to four-unit home.
• Your mortgage is owned or controlled by Fannie Mae or Freddie Mac.
• You are current on your mortgage payments.
• The amount you owe on your first mortgage is about the same or slightly less than the current value of your house.
• You have a stable income sufficient to support the new mortgage payments.

How do I know if my loan is owned or controlled by Fannie Mae or Freddie Mac?
Simply contact me and I will help you determine if your mortgage is backed by Fannie Mae or Freddie Mac, or you can check the Fannie Mae website look-up link to see if your address applies http://loanlookup.fanniemae.com/loanlookup/ .

I owe more than my property is worth. Do I still qualify to refinance under the Making Home Affordable Program?
Eligible loans will include those where the first mortgage will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000, but you owe $210,000 or less, you may qualify. The current value of your property will be determined after you apply to refinance.

If I am delinquent on my mortgage, do I still qualify for the Refinance Initiative?
No, but the good news is that you may qualify for the Modification Initiative. Contact me to review your options.

I have both a first and a second mortgage. Do I still qualify to refinance under the Making Home Affordable Program?
As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible for the Refinance Initiative.

Will refinancing lower my payments?
That depends. If your interest rate is much higher than the current market rate, you would likely see an immediately reductions in your payment amount. However, if you are paying interest only on your mortgage, you may not see your payment go down. But, you will be able to avoid future mortgage payment increases and may save a great deal over the life of the loan.

What are the terms of the refinance and what will the interest rate be?
All loans refinanced under the plan will have a 30- or 15-year term with a fixed interest rate. The interest rate will be based on market rates at the time of the refinance. Currently, interest rates are at historical lows, which makes this a great time to examine your refinancing options.

Will refinancing reduce the amount that I owe on my loan?
No, refinancing will not reduce the principal amount you owe. However, refinancing could save you money by reducing the amount of interest that you repay over the life of the loan.

Can I get cash out to pay other debts?
No. Only transaction costs, such as the cost of an appraisal or title report may be included in the refinance amount.

How do I apply for the Refinance Initiative?
Contact me today to discuss your specific situation and to examine your options. If this plan is right for you, we can begin working on your refinance immediately. As part of the discussion, we may need to look at the following information:

• Recent paystubs to help determine your gross household income
• Your most recent income tax return
• Information about any second mortgage on your property
• Account balances and minimum monthly payments due on all of your credit cards
• Account balance and monthly payments on all other debts, such as student loans and car loans

As always, if you have any questions or would like to discuss how this information may specifically impact you, I'd be happy to sit down with you. Just call or email me to set up an appointment.

Aaron Hoy

Mortgage Consultant

Office: 425-297-4191

Cell: 425-750-5283

License #: 510-LO-39698

A Division of Axia Financial, LLC

Email: ahoy@homestead-mortgage.com

2707 Colby Ave, Ste 1212

Everett, WA 98201