If you're having already tried to refinance your mortgage you might have found that because of one or more of the following reasons you have been refused either through your present lender of another. Your credit score is low, not unexpected in fact as you have struggled to make increased installments, and generally most individuals scores have dropped. You have no equity left in your home, again unsurprisingly as there has been a drop in property prices across the developed world and massive drops in some places. You don't have enough income to meet the criteria under the present new mortgage rules. Essentially it is a very tough circumstance as you're scoring for all the criterion for mortgage lending might have dropped.
If you're trapped with a mortgage rate which is much higher compared to those presently offered to new mortgage borrowers it would seem a very sensible move to refinance your existing mortgage. Well it is a very good plan - the problem is how to do it.
There is one place that you can seek if you have tired all other avenues. The Home Affordable Refinance Program allows you to refinance your mortgage through a new fixed rate loan at a low interest rate. The three main criteria for a successful outcome are that the previous loan must be in some way connected with Fannie Mae or Freddie Mac that is loaned or guaranteed by either of them. You need to be up to date with your current mortgage payments that means no longer that 30 days past due in the last year. You have to be able to explain that you have the capability to pay the loan. The system has no exact necessity as to your credit score and you could borrow up to 125% of the value of your assets.
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