Cost of Mortgages Goes Up for At-risk Homeowners
Fannie Mae, the nation’s largest purchaser of mortgages, just doubled fees on loans in so-called “adverse markets.”
For homeowners looking to avoid foreclosure by refinancing before their ARM resets, this means their borrowing costs will be higher.
Frankly, refinancing to stop foreclosure never made very much sense, particularly when you look at the price you had to pay.
Now, it makes even less sense. Another door is closed to homeowners trying to find foreclosure relief.
While I understand why they are charging more to borrow in riskier markets, the current situation seems to call for more choices when trying to avoid foreclosure… not less.
The good news is that many people who believe that they “have to” refinance would get as good, if not better results, by negotiating a change in terms to their existing mortgage.
If you’re looking for a way to do this for maximum benefit, get in touch with me here.
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