October 25, 2007 – Finally some good news for low and moderate income homeowners. Countrywide and NACA (Neighborhood Assistance Corporation of America) have announced an initiative to help borrowers save their homes.

Because many borrowers hesitate to contact their lender directly, this partnership lets borrowers having trouble making their payments begin the process through one of NACA’s 33 offices around the country.

Options include a payment plan you can afford, a modification of your loan, special refinancing or restructuring of your loan. One of the programs available is a no down payment, no closing costs, no points, no fees, no perfect credit at a below market interest rate - currently 5.325% -30 year fixed .
If you are interested in this program you can go to Countrywide’s special website, http://www.HomeByCountrywide.com or the NACA website at www.NACA.com.

You can also get a quote from these online lenders who may be able to refinance your ARM (adjustable mortgage) into a fixed rate or your fixed rate mortgage into a lower fixed rate.

Oct 18, 2007 - Despite being in the news, 75% of homeowners (holding an ARM) have no idea that their monthly may go up (in some cases by 50% or more ) before the end of next year. If you think “there’s nothing I can do about it”, there is a lot you can do about it. You may well be able to stop the increase and wind up with a lesser payment. Speaking of the resetting mortgages, Keith Gumbinger of HSH Associates said: “Hopefully, they’ve been prudent about preparing for it, building a nest egg or refinancing the loan“. If you have a fixed rate, you may also be able to refinance to a lower rate.Editor’s Note:(current national avg as of October 18, 2007)
30 yr fixed - 6.07%, 15 yr fixed - 5.70%, 5/1 ARM - 5.80% - see rate in {!custom city}

Note: If you are counting on help from the government through all the proposals by politicians or your lender, you are probably out of luck. They talk about modifying loans (stretching out payments or lowering rates) but so far very few homeowners have been able to do this (less than 1% of borrowers with the largest lender*).

The new program, called “HOPE NOW“, includes eleven of the nation’s largest mortgage service companies (the company you send your payment to) as well as many mortgage counseling agencies. Treasury Secretary Henry Paulson said this program has created an “aggressive plan to reach more homeowners and help them find a way to stay in their homes”. It includes special toll-free numbers that the mortgage companies have set up and mass mailings to inform homeowners of their options.Industry officials urge homeowners whose payments are too high to:
1) Contact their mortgage service company (who you make your payments to) or a credit counseling organization as quickly as possible. Do not wait until you have fallen behind.
- or -
2) Check refinancing options that may be available. You can often change from an adjustable rate to a fixed rate, saving $250-$300 per month on a typical $1,200 payment.

Rates on 30-year mortgages fell this week after two consecutive weekly increases, providing a break for home buyers and the beleaguered housing industry.

Freddie Mac, the mortgage company, reported Oct 4 that 30-year, fixed-rate mortgages averaged 6.37 percent this week, down from 6.42 percent last week. After hitting a high for this year of 6.73 percent in mid-July, rates have been trending lower as the worst slump in housing in 16 years has contributed to slower economic growth and fewer worries about inflation.

The Federal Reserve announced on September 18 that it was cutting a key interest rate by a more-than-expected 0.50% in an effort to make sure that the housing slump and the most severe credit crunch in almost a decade don’t push the economy into a recession. Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, averaged 6.03 percent this week, down from 6.09 percent last week.Rates on five-year adjustable rate mortgages averaged 6.11 percent, down from 6.15 percent last week. One-year ARMs averaged 5.58 percent, down from 5.60 percent.After a five-year increase, sales of both new and existing homes fell sharply last year. The slump has worsened this year as soaring foreclosure rates have caused lenders to tighten qualifications for getting a loan. While the delinquencies began in the market for subprime loans, which are offered to borrowers with weak credit histories, they have spread to other loan categories.

There are still lenders who are willing to refinance loans of homeowners whose payments have or will soon increase. Experts recommend getting several quotes before making a decision.