Most lenders will launch their refi- plus programs beginning April 7^th.  Homeowners that are eligible for the program will be able to start the process of refinancing their mortgage to a lower interest rate.  To see if you are eligible, you may go on this government website:

 

http://makinghomeaffordable.gov/index.html

 

If you feel that you are eligible, you should have the following documents ready for your lender:

 

·          Information about your mortgage, such as your monthly mortgage statement and

·          Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.

·          Your most recent income tax return.

·          Information about any second mortgage or home equity line of credit on the house.

·          Account balances and minimum monthly payments due on all of your credit cards.

·          Account balances and monthly payments on all your other debts such as student loans and car loans.

 

Remember, the unfortunate thing about this program, is that it allows any mortgage broker or company to offer assistance. For this help, they will charge. First decide if you are eligible and if it is worth it to you.  Your first stop should be your current lender, not the blind solicitor that promises you an unrealistic rate. Do your homework- the program will last one full year, so you have time. Also, be aware that in the beginning of the program period, lenders will be unsure of the guidelines, unclear of the process and understaffed. Whereas, by the end of the program, they will be clear on the guidelines (which would have changed), have the process down pat and be understaffed. 

 Better to wait a few weeks, while the kinks are being ironed out and also give yourself time to do the research. Please do the research, make sure you have a reputable representative and be prepared.

 

Remember, if it sounds too good to be true, it is!

 

Dale Siegel