I want to refinance my mortgage but my amortization is over 30 years and I owe over 85% of my home value what can I do?

General Katie Hommy 1 Mar


2011-03-01 | 09:32:18

You want to refinance your mortgage but the government will ban insured refinances over 85% loan-to-value (LTV) and amortizations greater than 30 years on March 18, 2011.

Your concern is that your mortgage amortization was originally over 30, 35 or up to 40 years and you don’t want to change the amortization.  You enjoy your low mortgage payments and want a better rate WITH the same amortization.

Don’t lose sleep!

Insurers will allow an exception to the refinance restriction for qualified borrowers who need to refinance. This in order for you to have the luxury to again, shop for another mortgage rate and product from the many lenders offered by your mortgage professional.

The key is that the borrower must not increase their loan amount or amortization. Even mortgagors with LTVs above 95% can switch lenders in this manner.

However, some lenders don’t accept transfers when the LTV is over 90-95%. If this is relevant to you, it’s best to speak with your mortgage professional, (Katie Hommy A.M.P.) for complete details.

Your mortgage is one of your biggest expenses. For this reason it is imperative to find the best interest rates and mortgage terms you possibly can. By shopping around you can save substantial amounts of money over the life of your mortgage loan.