Mortgage rates held steady over the last week as homeowners continued to apply for refinancing. According to the Mortgage Bankers Association, four of five mortgage applicants are homeowners seeking to refinance with today’s low rates. However, a lot of these potential borrowers end up deeply frustrated by high fees and confusing rules.
The fees can add up depending on your fico score, your equity position, your property type, your loan amount, and if there is a second mortgage. These are extra add-ons in addition to the lender’s origination charges, the appraisal fee and other costs.
Also, borrowers with mortgage insurance are being told that they can’t refinance yet under the Obama administration’s Making Home Affordable Plan because the mortgage insurance companies have not implemented the Obama plan yet. The problem seems to be a lack of communication and system upgrade delays among lenders, mortgage insurance companies, Fannie Mae and Freddie Mac, and the federal government.
Hiding in plain sight is one of the worst actions a homeowner who is facing foreclosure can take.
You won’t save your house - or credit - by barricading the door and ignoring phone calls from bill collectors.
It is completely understandable that you want to isolate yourself. An unbelievable amount of shame, fear and guilt can wash over someone who is behind on payments or who is about to lose a home. more…