1% Mortgage Rates

1% mortgage rates? Yes, is the Treasury Department just announced the Second Lien Program which will help homeowners with their second mortgages.

The Second Lien Program is part of the Obama Administration's Making Homes Affordable ( MHA) Program designed to help the housing market recover and keep people in their home who are facing foreclosure.

An estimated six million people are expected to face foreclosure over the next several years. 50% of those people facing foreclosure have second mortgages. Second mortgages sometimes make modifying or refinancing first mortgages more difficult, even preventing a change in first mortgage terms because the second lienholder objects to the modifications.

Loan Type

Purchase Refinance with Cash out Refinance

State

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

FICO Score

Superior (780-850) Exceptional (760-779) Excellent (740-759) Very Good (720-739) Good (700-719) Above Average (680-699) Average (660-679) Fair (640-659) Need Improvement (620-639) Poor (350-620)

Loan Amount

$

Points

Up to 0 points Up to 0.5 points Up to 1 points Up to 1.5 points Up to 2 points Up to 2.5 points Up to 3 points

LTV

%

Loan Term

 15-Year Fixed  20-Year Fixed  30-Year Fixed  5-Year ARM  7-Year ARM  10-Year ARM

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The lenders whose rates and other terms appear on this chart are ICB's advertising partners. They provide their rate information to our data partner RateUpdate.com. Unless adjusted by the consumer, advertisers are sorted by APR from lowest to highest. For any advertising partners that do not provide their rate they are listed in advertisement display units at the bottom of the chart. Advertising partners may not pay to improve the frequency priority or prominence of their display. The interest rates, annual percentage rates and other terms advertised here are estimates provided by those advertising partners based on the information you entered above and do not bind. Any lender Monthly payment amounts stated do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. Although our data partner RateUpdate.com collects the information from the financial institutions themselves, the accuracy of the data cannot be guaranteed. Rates may change without notice and can change intraday. Some of the information contained in the rate tables including but not limited to special marketing notes is provided directly by the lenders. Please verify the rates and offers before applying for a loan with the financial institution themselves. No rate is binding until locked by a lender.

Lender

APR / Rate

Fees / Points

Payment

NMLS #401822

5.478%

15-Year Fixed

5.250%

$6,000

Includes 0.500 points for $2,000

Lender Fees: $4,000

$3,216 /mo

Next >

NMLS #757416

5.494%

15-Year Fixed

5.375%

$3,112

Includes 0.778 points for $3,112

Lender Fees: $0

$3,242 /mo

Next >

NMLS #1025894

5.515%

15-Year Fixed

5.375%

$3,660

Includes 0.740 points for $2,960

Lender Fees: $700

$3,242 /mo

Next >

NMLS #6606

5.652%

15-Year Fixed

5.500%

$3,952

Includes 0.988 points for $3,952

Lender Fees: $0

$3,269 /mo

Next >

NMLS #757416

6.332%

30-Year Fixed

6.250%

$3,460

Includes 0.865 points for $3,460

Lender Fees: $0

$2,463 /mo

Next >

NMLS #1025894

6.454%

30-Year Fixed

6.375%

$3,336

Includes 0.659 points for $2,636

Lender Fees: $700

$2,496 /mo

Next >

NMLS #401822

6.506%

30-Year Fixed

6.375%

$5,495

Includes 0.875 points for $3,500

Lender Fees: $1,995

$2,496 /mo

Next >

NMLS #6606

6.577%

30-Year Fixed

6.490%

$3,612

Includes 0.903 points for $3,612

Lender Fees: $0

$2,526 /mo

Next >

NMLS #3030

6.658%

15-Year Fixed

6.500%

$4,000

Includes 1.000 points for $4,000

Lender Fees: $0

$3,485 /mo

Next >

NMLS #3030

7.338%

30-Year Fixed

7.250%

$3,500

Includes 0.875 points for $3,500

Lender Fees: $0

$2,729 /mo

Next >

Rate data provided by RateUpdate.com. Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes and insurance premiums. Actual payments will be greater with taxes and insurance included. Rate and product details.

This program might help 1 million to 1.5 million home owners reduce their mortgage payments. The government, rather you the tax payer, will share the cost for this program along with lenders. The pay-for-success incentive used for the first mortgage modification programs will also be used for the Second Lien Program.

Servicers can be paid $500 up-front for a successful modification and then success payments of $250 per year for three years, as long as the modified first loan remains current.

Borrowers can receive success payments of up to $250 per year for as many as five years. These payments will be applied to pay down principal on the first mortgage, helping to build the borrower's equity in the home

For amortizing loans (loans with monthly payments of interest and principal) the government will share the cost of reducing the interest rate on the second mortgage to 1 percent.

Afer five years, the interest rate on the second mortage will step up to the then current interest rate on the modified first mortgage, subject to the Interest Rate Cap on the first lien, set equal to the Freddie Mac Survey Rate.

For interest-only loans the government will share the cost of reducing the interest rate on the second mortgage to 2 percent.

Here is an example of how this program is designed to work from financialstability.gov.

In 2006: Family B took out an interest-only second mortgage with a balance of $60,000, an interest rate of 4.4%, and a term of 15 years.

Today: Family B has $60,000 remaining on their interest-only second mortgage because none of the principal was paid down.

Under the Second Lien Program: The interest rate on Family B’s interest-only second mortgage will be reduced to 2% for five years. This will reduce their annual interest payments by $1,440.

After those five years, Family B’s mortgage payment will adjust back up and the mortgage will amortize over a term equal to the longer of  the remaining term of the family’s modified first mortgage (e.g. 27 years if the first mortgage had a 30 year term at origination and was three years old at the time of modification) or  the originally scheduled amortization term of the second mortgage.