NEW REFI PLUS PROGRAM

Watch your savings add up quickly!

Even if you’ve experienced a property value decline as a result of the economic downturn and mortgage crisis, you may be able to refinance your home loan into a very low fixed rate mortgage!

The Mortgage Refinance Affordability Plan recently implemented by President Obama offers many homeowners the chance to refinance their current mortgages. Many homeowners who have seen their property values drop the past several years can see real help with this plan.

And we at InSight Mortgage Group can answer your questions and see if you qualify for this or other refinancing programs. If you have a current 80/20, 80/15/5 or 80/10 loan, where you did a 1st/2nd combo in order to avoid PMI, we may be able to get you into a 105% LTV first mortgage.

Save thousands of dollars over the life of your loan by locking into a low interest fixed rate loan. Maybe a refinance could save your home from foreclosure.

Whatever your personal home loan needs may be, take advantage now and see your savings add up. Call Dick or Michele at InSight Mortgage Group, 913-642-3334. Email us at dickw@wantinsight.com or michele@wantinsight.com or start your application online at wantinsight.com.

THE NEW MAKING HOME AFFORDABLE PROGRAM

Right now there’s a lot of confusion and big talk about the new government interventions in the mortgage and housing markets. The Obama administration hopes that two new programs should cut mortgage bills for up to 9 million homeowners who are having trouble making their monthly payments and there are also incentives that may pay down principal in some cases.

The government program has two parts:
* The Home Affordable Refinance
* The Home Affordable Modification.

PLEASE NOTE : The details of this program are not finalized! Most importantly, it remains 100% VOLUNTARY and mortgage servicers (the companies that collect the mortgage payments) are not obligated by law to follow these rules and guidelines…YET. Financial institutions who have already received government funding are not obligated to participate. However, financial institutions receiving new, or more, government funding in the FUTURE, WILL be obligated to participate.

SO, no one really knows yet who will participate and how it will all work from a practical standpoint. Most of the media news at this point is generally speculative. After reviewing the Making Home Affordable government program, I can share with you some insights you may find useful.

MODIFICATION Program:

Three elements in the program:
* The government is offering financial incentives to mortgage servicers who modify loans for borrowers.
* Financial reimbursement is being offered to investors if they allow servicers to modify loans and then take a hit on the borrower’s re-default if the property declines in value after the loan modification.
* The government is offering incentives to borrowers who modify their loans and make their new payments on time.

Only primary residences are eligible, investment properties and vacation homes don’t qualify. Only borrowers who have experienced some sort of financial hardship can qualify. Borrowers will need to document that their current financial situation is worse than when the original loan was made. Income needs to have gone down, and/or expenses need to have gone up. The link provided will allow you to see if you qualify for at least the minimum requirements for the program:

http:/www.financialstability.gov/makinghomeaffordable/modification_eligibility.html
Remember, even if you do qualify under these minimum requirements, your servicer might not be participating in the program yet.

REFINANCE Program:

Basics: You must be current on your mortgage payments (no late payments in
the past 12 months);
Your mortgage balance cannot exceed 105% of the current value of your home;
Your mortgage needs to be owned/guaranteed by Fannie Mae or Freddie Mac

Based on the current market conditions, a refinance might make sense for you IF:
You have an adjustable rate, interest only, or balloon mortgage that you
want to convert into a fixed rate; or
You have a fixed rate where the rate is 6% or greater. Actually, if your
rate is as low as 5.5%, I’ll put you into my rate watch program and let
you know when rates get to the point where it would benefit you to
refinance.

Other Developments of Interest:

There has been some new government legislation impacting homeowners and first time home buyers:

* Home improvement tax credit
* First time home buyer tax credit
* Reverse mortgages for home purchase transactions (age 62 and older)
* Suspension of required minimum distributions for certain retirement accounts (age 70 ½ or older)

I’d be happy to discuss any of these programs with you. Call me at 913-642-3334 or email me at michele@wantinsight.com. I can lend insight into the confusion of todays market and help you determine the mortgage and home buying choices right for you.