I frequently run across clients and friends in Eugene Springfield that want to lower their mortgage payments, but are not sure what to do about it.  As a Realtor, one option I usually discuss is selling, which may or may not make sense depending on the situation.  2013 Lane County real estate prices are currently somewhere around where they were in 2004, so if folks have purchased or refinanced in the last 8 or 9 years, there’s often not enough equity to sell without being short.  There are plenty of short sales in Eugene Springfield these days, and it’s certainly an option for some, but not all.

Without sufficient equity, it also may be difficult to refinance.  One notable exception is FHA Streamline Refinance.  I’m not a lender and refer my clients, but as the lenders have explained the program it has some really good features, and some guidelines.  Guidelines for FHA Streamline Refinancing are:

1)  For homeowners with existing FHA mortgages.

2)  Monthly mortgage payment needs to be reduced by 5+% by the refinance.

3)  3 month perfect payment history on your loan, and 1 or less late mortgage payments in the last year.

4)  No appraisal required.

5)  No income verification.

6)  No minimum credit score.

7)  For existing loans close before June, 2009, minimal upfront MIP cost (.01%) and low monthly MIP (.55%/yr).

For some homeowners with FHA loans in Lane County, FHA Streamlined Refinance may make a lot of sense.  For others, selling may be a good option.  And for others, sitting tight and waiting for the real estate market in Eugene Springfield to fully recover may be the best option.  If you have real estate questions, please contact me.  If you’d like a referral to good lenders, I’d be happy to do that too.

(c) Robyn Hine. Used with permission.