New Modification Program
The Federal Housing Finance Agency will
require mortgage servicers to offer a streamlined modification program to
borrowers with loans owned or guaranteed by Fannie
Mae and Freddie Mac, starting in July. The offers will be sent to
homeowners who are at least 90 days behind on their loans but no more than two
years behind. To qualify, borrowers must owe at least 80 percent of the home's
value.
The modification reduces the loan's interest rate and extends the loan term
to 40 years.Minimal paperwork: Borrowers won't be required to submit any financial documentation to the lender to get approval. The loan modification becomes permanent after three payments are made during the three-month trial period.
Ginnie Mae Loans
Your just screwed- no mod for you!
Borrowers seeking low-payment mortgages will be charged for mortgage insurance for the life of their loans if they don't get their Federal Housing Administration mortgages by June 2.
The FHA currently requires borrowers to pay
for mortgage insurance on FHA loans until the balance reaches 78 percent of the
original value of the home.
Pay forever: Once the change goes into effect, all new FHA loans with less
than a 10 percent down payment will carry mortgage insurance until the loan is
refinanced or paid off. Loans with a 10 percent down payment or greater will
have to pay for mortgage insurance for at least 11 years.For borrowers who plan to stay in their homes for less than 10 years, the new rules won't make that much of a difference, says Cameron Findlay, chief economist at Discover Home Loans. That's because normally, it takes borrowers about 10 years to reach the required loan level for the insurance to cancel anyway.
Mortgage Rates
The Mortgage Bankers Association estimates the 30-year fixed rate will reach 3.9 percent by the end of the first quarter this year. That's not as good as the superlow rates that borrowers got in December 2012, when the 30-year fixed hit a record low of 3.5 percent in Bankrate's weekly survey
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