Mortgage Refinancing Sample Program

Example: You currently owe $300,000 on your home loan. You purchased your home at the height of the housing bubble at $400,000. You decide the current rate you are paying on your mortgage is 1.5 percent higher than the refinance rate you can get today. You start the refi process, a home appraisal is done and find out the value of your home has decreased 20 percent to $320,000. Although the value of your home is more than you owe, the loan-to-value ratio is 93.75 percent. Making you uneligible for a home refinance.

You won’t find a bank to refinance your home loan in this example but if your current mortgage is held by one of the government sponsored entities like Freddie Mac or Fannie Mae you might be eligible to refi under a special program that was created by the Obama administration. Go to makinghomeaffordable.gov to see if you’re eligible for mortgage refinancing with up to a 105% loan-to-value ratio.

If your mortgage isn’t held by one of the government sponsored entities, you believe your loan-to-value ratio is under 80 percent and you want to looking into refinancing, check our mortgage rate tables for current refinance rates in your zip code.