New FANNIE MAE Refi Program Designed to Help Homeowners who are “Under Water”
By the middle of 2008, Fannie Mae intends to introduce a program that would allow homeowners who currently owe more than their homes are worth to refinance their mortgage(s), giving them the opportunity to lock in a lower fixed rate.
The amount refinanced would be equivalent to the existing mortgage and only homeowners who are current on their current mortgage payments would qualify. They could refinance loans of as much as 120% of their existing mortgage balance.
If rolled out, an estimated 150,000 households would qualify for this plan. Fannie Mae hopes that, since homeowners need to be current to qualify, any who enroll in the program will remain current with their payments until the market fully corrects.
This seems to be a very good option for those Phoenix real estate and Scottsdale real estate owners who I really feel bad for – those who remain current with their existing mortgages but at a great cost, and who might not otherwise qualify for a short sale.