{"id":17011,"date":"2020-09-14T13:11:41","date_gmt":"2020-09-14T20:11:41","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=17011"},"modified":"2020-09-14T14:31:09","modified_gmt":"2020-09-14T21:31:09","slug":"cant-refinance-because-your-income-dropped-help-may-be-on-the-way","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17011\/cant-refinance-because-your-income-dropped-help-may-be-on-the-way\/","title":{"rendered":"Can\u2019t refinance because your income dropped? Help may be on the way."},"content":{"rendered":"

\"\"Last week, Freddie Mac published their Mortgage Market Survey, showing that the average rate, for conforming mortgage loans originated, was under 3%<\/a>.\u00a0 The company who performed the survey (Black Knight), figures that there are close to 20 million homeowners who can refinance now:<\/p>\n

The company says there are now 19.3 million “high quality” refinance candidates, the largest number ever. This is 43 percent of all active 30-year mortgages. Black Knight defines a refinanceable loan as one where the homeowner has a credit score of at least 720, at least 20 percent equity in the home, and the potential for a 75-basis point reduction in their mortgage interest rate. These homeowners have\u00a0potential savings averaging $299 per month, a national aggregate of $5.8 billion per month if all homeowners took advantage of the opportunity. That is the largest aggregate ever available through refinancing.<\/p><\/blockquote>\n

This is a stupendous amount of potential refinance candidates<\/strong>, maybe more than the industry has refinanced since March of this year.\u00a0 To put things in perspective, I have worked in real estate finance since 1997 and these past 6 months have been the hardest I have worked \u2013 ever.\u00a0 It means that my industry could be stretched for another 6 months.<\/p>\n

VA and FHA both have loan programs which permit borrowers to refinance their mortgages, if they aren’t taking out money, without verifying their income \u2013 that’s a BIG deal as many borrowers have suffered income losses since they originally took out their loan.\u00a0 Borrowers with conventional loans though, must have their incomes re-verified for the refinance.<\/strong>\u00a0 In one respect, income verification protects lenders from making a loan to people who may\/may not be able to afford it but, on the other hand, it offers no relief for borrowers who, despite the drop in income, have made their payments through thick or thin.<\/p>\n

The regulators however, are trying to address that problem.\u00a0 They propose to amend the definition of a “qualified mortgage” to include those which are “seasoned” for at least 36 months<\/a>.\u00a0 What that means to the “stuck” homeowners is that, as long as they have paid the last 36 monthly mortgage payments Read more<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Last week, Freddie Mac published their Mortgage Market Survey, showing that the average rate, for conforming mortgage loans originated, was under 3%.\u00a0 The company who performed the survey (Black Knight), figures that there are close to 20 million homeowners who can refinance now: The company says there are now 19.3 million “high quality” refinance candidates, […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,5],"tags":[],"class_list":{"0":"post-17011","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4858,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4858\/will-mortgage-brokers-be-the-hope-for-homeowners\/","url_meta":{"origin":17011,"position":0},"title":"Will Mortgage Brokers Be the Hope For Homeowners?","author":"Brian Brady","date":"October 8, 2008","format":false,"excerpt":"The FHA Hope For Homeowners program was designed for existing homeowners, struggling with mortgage payments and an \"upside-down\" equity position in their primary residence.\u00a0 It is a new program with lots of misinformation.\u00a0 Some believe it can only be offered by existing loan servicers, some think only participating lender\/servicers can\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10553,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10553\/the-rates-arent-the-only-thing-that-matters-my-thoughts-on-how-to-create-healing-in-the-housing-market\/","url_meta":{"origin":17011,"position":1},"title":"The Rates Aren’t The Only Thing That Matters….. (My thoughts on how to create healing in the housing market)","author":"Tom Vanderwell","date":"December 14, 2009","format":false,"excerpt":"A couple of thoughts about this article from the New York Times: It\u2019s true.\u00a0\u00a0 Anecdotally, I\u2019d have to say that depending on the day, anywhere from 30-50% of the people who I discuss refinancing with are either not able to do it because their income has fallen or because property\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/media.cnbc.com\/i\/CNBC\/Sections\/News_And_Analysis\/__Story_Inserts\/graphics\/__REAL_ESTATE\/home_equity.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":17130,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17130\/mortgage-refinancing-and-forbearance-three-balls-you-walk-one-strike-and-your-out\/","url_meta":{"origin":17011,"position":2},"title":"Mortgage Refinancing and Forbearance: Three Balls, You Walk, One Strike, You’re Out","author":"Brian Brady","date":"September 24, 2020","format":false,"excerpt":"One of the most consistent of the \"old school mortgage bloggers\" is Rhonda Porter in Seattle, writing over on The Mortgage Porter.\u00a0 She offers no-frills information about mortgage markets, the kind of straightforward advice homeowners need.\u00a0 Her blog is almost 15 years old. I wanted to advise current homeowners why\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/09\/blogging-guide-xYaMK5p3vCA-unsplash-480x320.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1382,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1382\/fha-streamlined-refinance-loans-originators-git-you-some\/","url_meta":{"origin":17011,"position":3},"title":"FHA Streamlined Refinance Loans: Originators, Git You Some !","author":"Brian Brady","date":"May 3, 2007","format":false,"excerpt":"Loan originators, subprime mortgage blues got you down in the dumps? Let's talk about a way to get your pipeline phat again. I'm going to give you a step-by-step plan to start, what Todd Duncan calls, the 90-day burn. If you follow these steps, and you don't close 10 loans\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6014,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6014\/why-wont-mortgage-rates-drop-below-5\/","url_meta":{"origin":17011,"position":4},"title":"Why Won’t Mortgage Rates Drop Below 5% ?","author":"Brian Brady","date":"December 10, 2008","format":false,"excerpt":"Mortgage-backed securities have been on a tear, improving more than a half a point in the last week.\u00a0 This means that the 5.25% rate, offered at 1 point last Friday, should be offered at a half a point today....BUT.... ...that isn't the case at all.\u00a0 Mortgage rates may very well\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1558,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1558\/pay-the-loan-down-and-refinance-later-the-irs-is-out-to-getchya\/","url_meta":{"origin":17011,"position":5},"title":"Pay the Loan Down and Refinance Later? The IRS is Out To Getchya !","author":"Brian Brady","date":"June 21, 2007","format":false,"excerpt":"Rising real estate prices and serial \"cash-out\" refinance transactions has the IRS licking their chops. Mortgage interest deductions are limited to the acquisition indebtedness plus a maximum of $100,000 for home equity indebtedness. Scofflaws have taken advantage of the fact that the IRS is not able to track the segregation\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/17011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=17011"}],"version-history":[{"count":7,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/17011\/revisions"}],"predecessor-version":[{"id":17019,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/17011\/revisions\/17019"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=17011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=17011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=17011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}