Tweet
... more than HALF his income???
______
***
<span style="font-family: 'Verdana'">"<span style="font-weight: bold">PROBLEM</span>: Wants to refinance but his "jumbo" mortgage exceeds the limits of the government program.
Michael McKinney can't refinance the loan on <span style="color: #FF0000">his $1 million five-bedroom home in Phoenix, Md</span>., north of Baltimore. Even though he put 30% down when he bought the home in October 2007, the value has fallen $130,000, leaving him with less equity than what most lenders require to refinance a jumbo loan these days.
Mr. McKinney says he has an excellent credit rating,<span style="color: #FF0000"> has never missed a mortgage payment even though the $4,400 payment accounts for half of his monthly income</span>. He's like to take advantage of lower rates to reduce his payments, but isn't eligible. "People like me are being cut out of the process. There's an entire part of the market that's being ignored," he says.
<span style="color: #FF0000">Mr. McKinney, who has four young children</span>, says that while it's one thing to exclude borrowers with multi-million dollar homes, he disputes the idea that all jumbo borrowers are millionaires that don't deserve help. "Why are people in some parts of the country being penalized by a…limit that doesn't reflect reality in many areas?" he says.
<span style="font-weight: bold">RESULT:</span> He won't qualify to refinance under the housing stability plan because he took out a so-called "jumbo" loan that is too large to qualify for backing from Fannie Mae or Freddie Mac. He might be eligible for a loan modification, but he'd have to show that he's in danger of default."</span>
______
***
<span style="font-family: 'Verdana'">"<span style="font-weight: bold">PROBLEM</span>: Wants to refinance but his "jumbo" mortgage exceeds the limits of the government program.
Michael McKinney can't refinance the loan on <span style="color: #FF0000">his $1 million five-bedroom home in Phoenix, Md</span>., north of Baltimore. Even though he put 30% down when he bought the home in October 2007, the value has fallen $130,000, leaving him with less equity than what most lenders require to refinance a jumbo loan these days.
Mr. McKinney says he has an excellent credit rating,<span style="color: #FF0000"> has never missed a mortgage payment even though the $4,400 payment accounts for half of his monthly income</span>. He's like to take advantage of lower rates to reduce his payments, but isn't eligible. "People like me are being cut out of the process. There's an entire part of the market that's being ignored," he says.
<span style="color: #FF0000">Mr. McKinney, who has four young children</span>, says that while it's one thing to exclude borrowers with multi-million dollar homes, he disputes the idea that all jumbo borrowers are millionaires that don't deserve help. "Why are people in some parts of the country being penalized by a…limit that doesn't reflect reality in many areas?" he says.
<span style="font-weight: bold">RESULT:</span> He won't qualify to refinance under the housing stability plan because he took out a so-called "jumbo" loan that is too large to qualify for backing from Fannie Mae or Freddie Mac. He might be eligible for a loan modification, but he'd have to show that he's in danger of default."</span>
Comment