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what do we know about Obama's homeowner affordability and stability plan?

We got a letter from our mortgage co. telling us that because we have paid on time consitantly since the beginning of the loan we could refinance for no cost, and the interest rate could possibly be lowered from 6.5 to 5.0%

I do not speak mortgage and my husband doesn't have time to look into it, any links or info would be helpful.

Thanks in advance ladies!

 
LuckyClown

Asked by LuckyClown at 1:08 PM on May. 20, 2009 in Politics & Current Events

Level 1 (3 Credits)
This question is closed.
Answers (11)
  • http://www.treas.gov/initiatives/eesa/homeowner-affordability-plan/HousingExampleSheet.pdf
    you have to go through the federal government for that assistance
    Anonymous

    Answer by Anonymous at 2:30 PM on May. 20, 2009

  • You need to read the letter they sent you carefully to make sure the new interest rate would be a FIXED rate for the life of the loan, not adjustable. They could raise the payments on you in that case to more than you are paying now if it is adjustable. Make sure ther is no "Balloon" payment attached, which is a huge payment at the end of the loan, sometimes as much as 15, 20 or 40 thousand dollars in one fell swoop. Make sure the lowered interest rate doesn't extend the life of the loan. (Like paying for the next 20 years instead of the next 15, for example) There may be other things to watch out for, but those are the 3 I can think of right now, I don't know where you could look for more information. I hope others have more ideas.
    pagan_mama

    Answer by pagan_mama at 1:52 PM on May. 20, 2009

  • The above poster did a very good job of covering what might be hidden. Also watch out for closing costs that aren't paid to the bank like a mortgage recording fee to the county.
    Anonymous

    Answer by Anonymous at 2:03 PM on May. 20, 2009

  • You have to apply through the government for that, they don't solicit homeowners.
    akinbottom2

    Answer by akinbottom2 at 2:16 PM on May. 20, 2009

  • no they did not solicit us, our current mortgage company sent us a letter to inform us of it and have us apply. They just spoke to my husband and the no closing cost is really that- there is no closing cost... I will let him know to ask about balloon payments, I am not sure he has heard of that, otherwise he is very much aware of the bad deal adjustable rate loans, he would never fall for that. \
    Thanks ladies, any more info is still appreciated.
    LuckyClown

    Answer by LuckyClown at 2:22 PM on May. 20, 2009

  • its more government assistance. Kinda like the banks and car companies
    kittymommy

    Answer by kittymommy at 3:28 PM on May. 20, 2009

  • I do not speak mortgage and my husband doesn't have time to look into it, any links or info would be helpful.

    ***

    With all due respect, not understanding the ins and outs of the single biggest purchase of your lifetime, because you don't "get it" or you don't "have time" to sit down and read about it, is no excuse. It's the reason so many people are in foreclosure and needing a bailout (not you, I'm speaking in general)!

    If you have questions, get on the phone to the people who sent you the letter, make an appointment to meet FACE TO FACE to discuss in DETAIL, read the FINE PRINT (with a magnifying glass if you have to), ask questions, then run it past a real estate attorney, if you're still unsure, BEFORE you sign in the dotted line.

    Remember the old adage: If it sounds too good to be true, it probably isn't!!
    LoriKeet

    Answer by LoriKeet at 3:43 PM on May. 20, 2009

  • what do we know about Obama's homeowner affordability and stability plan?



    Um....that like everything else about him, it's a big joke, won't work,,will only bring more problems and heartaches to America,and is bound to fail.
    Anonymous

    Answer by Anonymous at 4:13 PM on May. 20, 2009

  • because you don't "get it" or you don't "have time" to sit down and read about it, is no excuse.


    Obviously she is researching it and trying to understand . She also mentioned that they have spoken to her husband. She is asking us for advice and links. People like you make others afraid to ask questions. We should all be here to help each other not step on everyone to try to make ourselves look better. Maybe you should read questions a little better before jumping on people and playing the superior card.
    MACY7108

    Answer by MACY7108 at 6:45 PM on May. 20, 2009

  • Definitely check for fees!! Underwriter fees, appraisal fees,credit report fees,recording fees,transfer tax, county property tax reserve. It will be just like the first time you applied for a mortgage.
    rotPferd

    Answer by rotPferd at 9:36 PM on May. 20, 2009

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