It sounds stupid on the surface but these are loans the GSE's already have on their books and I guess they figure something coming in is better than nothing, and a foreclosure/vacant property costs them a lot more in the long run.

The changes apply to loans that the company owns or guarantees.

S+F

We have a very long way to fall because of this.

In 3 years if we are still alive we will be looking at where we are now as the good ole days.

We have an FHA loan at 6.5 percent. We just got a call from the bank, on the new program where they want us to refinance to a 5 percent.

Well, we looked at the paperwork, and guess what. We figured out why the banks are pushing it.

They want to finance the original loan amount. Not the current balance.

So the money we paid off last year would not matter. The loan amount which now should be 95k, they want to take back to 98 k. You also have to repay the
title fees and tax. So we said we will pass. Not worth the small amount we would save every month.

Originally posted by amatrine
We have an FHA loan at 6.5 percent. We just got a call from the bank, on the new program where they want us to refinance to a 5 percent.

Well, we looked at the paperwork, and guess what. We figured out why the banks are pushing it.

They want to finance the original loan amount. Not the current balance.

So the money we paid off last year would not matter. The loan amount which now should be 95k, they want to take back to 98 k. You also have to repay the
title fees and tax. So we said we will pass. Not worth the small amount we would save every month.

Interesting Information

Thank you for that

We need more first hand posts about this