Making Home Affordable Refinance: How You Can Refinance Your Home Without Any Closing Cost

You are facing foreclosure. You want to save your home. You have just learned that you don’t qualify for a loan modification under the Making Home Affordable Refinance Modification Program. That is really depressing. You are almost ready to throw in the towel and walk away. Don’t give up. There are still other ways you can stop the foreclosure process and save your home. One of these is called a Short Refinance. Here you get another lender to refinance your loan. The amount you refinance is more in line with the current value of your home. The interest rate is lower than on your current loan. The monthly payment is one that you can afford to make every month.

It may seem like a relatively sound idea – stop paying money toward a losing investment, take a potential credit hit and in 5-7 years be back in good standing when the housing market turns around. The main reason the media has been giving for avoiding this practice is a “moral obligation” to fulfill a contract with a bank, which can mean very little to a family that is struggling to make ends meet. However, there is much more at stake when you foreclose on your home. Beyond any moral obligation, there are consequences, but more importantly – just some things you should consider before you make any major decision that could affect your life for years to come: Reasons You Should Not Walk Away From Your Mortgage:

How do you find out whether you can get a Short Refinance? Unless you are very skilled, this is not something you try to do on your own. You need a lawyer or an expert in doing this to represent you. The lawyer or the expert has to do their homework. They have to show your mortgage company how much they will get from the Short Refinance. They then have to show them how much they can expect to get from going ahead with the foreclosure and the sale of your home. They then have to let the people at your mortgage company come to the conclusion that it makes more sense to accept the money from the refinance than to go forward with the foreclosure.

In the world of refinancing, competition plays a huge role. Try to compare refinance offers with other available offers. Showing printout offers of refinancing firms to other prospective lenders will help you get a much better deal when it comes to no closing cost mortgage interest rates. If you do your research properly, you will posses the negotiating power to get the best deal possible. You can also determine the true value you are paying over time with this kind of mortgage loans that have higher interest rates and compare it with the standard loans that have closing costs. If you have no plans of owning the home for a long time, then acquiring the this type of refinancing loan would be a wise choice.

If you are over 62 years old and have a lot of equity in your home, you may qualify for a reverse mortgage. The money from the reverse mortgage can be used to pay off your existing loan.

Learn more about Obama Mortgage Relief Plan Qualifications.