Before I give up on my quest to refi

[Estarrio]

I'm fairly certain that I have no more options to explore but I thought I'd post my situation and see if missed anything before giving up.

 

I have a Freddie Mac mortgage. Former Taylor Bean and Whittaker, now serviced by CENLAR.

 

My current rate is 7.125. I chose lender paid PMI when I purchased the house, putting 3% down.

 

I've never been late on my mortgage.

 

I do not have 20% equity in my home but I do fall with the 120% (possibly the 105% depending on appraisal) range for a Home Affordable Refi.

 

TB&W would not particpate in the Home Affordable Refi program. CENLAR does not originate loans. I was contacted by a broker who said they could help but then backed off because of the lender paid mortgage insurance.

 

I don't qualify for any hardship based modifications but I could use the money to support my growing family if there is a possibility of obtaining a lower rate. After months of searching, I think that I'm out of luck. Any info to the contrary would be greatly appreciated!!!

[Brian B The Loan Professor]

When this program came out it had some holes in it. The problem being the MI

The way it was written the MI company was supposed to just redo your MI since you already had it

Not sure where the break down happened but I am guessing the MI companies gave the banks enough grief that the banks offering this will not touch a loan with MI.

The ONLY way this loan works is if you had a home that had 20% down and no MI then lost value due to a declining market. In that case the banks would do the loan as they wouldnt be required to have MI.

The MI companies are more gunshy than the banks these days after what they have been through.

I just ran into this where the borrower had a higher rate like you and the appraisal came in fine. The problem was that the system showed that the bank was paying the MI (Lender paid MI) However when he checked with the servicing company they said they were NOT paying MI but the bank wont accept that.

I was told that you could go back to the original bank holding the note and get it done through them but I have not experienced it yet.

 

B