Four refinance myths debunked

Interest rates have been at historically low levels for some time now and some borrowers have refinanced two or three times, but there are others who so far have allowed the opportunity to pass them by. I am not referring to borrowers who can’t possibly meet today’s standards. They haven’t refinanced because they can’t. My …

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Low Rates, High Obstacles to Refinancing Mortgage

As interest rates have slid over the past couple of years, Gabriel Bousbib of Englewood, N.J., refinanced his 15-year mortgage not once, but twice-cutting his interest rate in two steps from about 4.6 percent to 3.375 percent. He’s one of a number of homeowners who refinanced just a year or two ago, but decided it …

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Six must-haves for mortgage approval

Interest rates are hovering around historical lows, and low interest rates increase affordability, making it easier for buyers to qualify. Yet stories of buyers waiting months to gain loan approval and home purchase transactions not closing on time due to lender’s strict underwriting are all too common. Some buyers are turned down for illogical reasons. …

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HomePath loans can make buying foreclosures easier

Getting a mortgage loan on a foreclosure can be difficult. More and more buyers are discovering HomePath as a bypass to purchasing roadblocks. Learn the pros and cons to see if one’s right for you.

Like many other homebuyers who consider buying a foreclosed home, Chad Kinney was disappointed when he learned it would be difficult to get a mortgage for the property he chose.

The Fannie Mae-owned house that he wanted to buy needed repairs and would likely not pass the property inspection required by mortgage lenders, he was told. That’s when the listing agent suggested he apply for a HomePath mortgage, which doesn’t require mortgage insurance, a property inspection or appraisal and is offered exclusively to borrowers buying homes from Fannie Mae.

“That was the first time I ever heard of HomePath, so I started researching,” he says. “To me, the selling point was my monthly payment is lower and I can get an additional $15,000 for renovations.”

Fannie Mae started offering HomePath loans and HomePath renovation mortgages in 2009 to unload the thousands of homes the agency repossesses through foreclosure.

The little-known program has been gaining popularity in recent months, but many buyers are not aware of it and don’t understand the pros and cons of HomePath financing until a broker or agent suggest it to them, says Brent Kluge of PrimeLending in Timonium, Md.

How HomePath works…