February 2nd Market Update: Obama Modification Info Released

Good Morning,

I bet by know you can guess where interest rates are sitting. They have lowered slightly from last week but remain pretty much unchanged this far into the new year.

Here is an article breaking down the who, what, when, where and why’s (the 5 W’s of journalism, of course) of the Obama administration loan modification help. Keep in mind with this information that it is exclusive to the modification programs that had to be obtained from your Mortgage Servicer (such as Wells Fargo or whomever you made mortgage payments to). The major caveat with this program is that the homeowner had to already be late on their mortgage to qualify which gave some homeowners who couldn’t find alternatives to refinance a precarious choice at best. Don’t refinance or damage your credit by letting your payment become late to qualify.

This is different than the refinance programs that the Obama administration put together to be offered through Fannie Mae and Freddie Mac (the options I touched on a few weeks back) and although it did help a great deal of homeowners, it also handcuffed many homeowners into damaging their credit as the only option. Anyway, I thought the article was a good read for those interested in who the program helped. You know where to reach me if you have any other questions on these programs or where the market is moving until next week.

Rates: 30 year fixed at 4.625% and the 15 year at 4.25%, FHA: 4.625%: As always rates change with individual credit scenarios and programs, with credit in the mid 700s and a 20% down payment these rates are what you should be

Have a great week!

Matt

Matt Royer

Mortgage Consultant, CMC | Homes Mortgage

NMLS# 366970

612-232-7646 c

651-770-0637 o

651-294-1001 f

www.MattRoyer.com

mroyer@homesmortgage.net