Mortgage Refinancing Up to 125% Loan-to-Value With Today’s Mortgage Rates Rising

Mortgage refinancing with up to an 125 percent loan-to-value ratio? Is it even worth it with today's mortgage rates rising quickly? Fixed mortgage rates have increased almost one percent since last month alone.

The Making Homes Affordable program might be expanded to include mortgage refinancing for mortgage loans that are higher than 105 percent of a home's value, according to a Bloomberg report this week.  The idea is to expand the program because only 80,000 mortgages have been refinanced since the program started.

Current Mortgage Rates

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 MRC'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 #757416

4.897%

15-Year Fixed

4.750%

$3,912

Includes 0.978 points for $3,912

Lender Fees: $0

$3,112 /mo

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NMLS #1025894

5.177%

15-Year Fixed

5.000%

$4,692

Includes 0.998 points for $3,992

Lender Fees: $700

$3,164 /mo

Next >

NMLS #757416

5.704%

30-Year Fixed

5.625%

$3,468

Includes 0.867 points for $3,468

Lender Fees: $0

$2,303 /mo

Next >

NMLS #1025894

5.972%

30-Year Fixed

5.875%

$4,192

Includes 0.873 points for $3,492

Lender Fees: $700

$2,367 /mo

Next >

NMLS #399799

5.972%

30-Year Fixed

5.875%

$4,347

Includes 0.755 points for $3,020

Lender Fees: $1,327

$2,367 /mo

Next >

Rate data provided by RateUpdate.com. Displayed by 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.

Current mortgage rates have been increasing lately making refinancing not  feasible for many homeowners, including homeowners eligible under the Making Homes Affordable Program. The average 30-year mortgage interest rate is at 5.65 percent this week, a sharp increase since mid May, 2009 when the average rate was at 4.84 percent.

"We're actively considering how to structure a program that makes sense over 105 percent," Federal Housing Finance Agency Director James Lockhart said, according to Bloomberg. The story quoted him saying a limit of 125 percent was under consideration, but "not necessarily the number we're going to end up with."

Act quickly because the window will shut for more and more people if mortgage interest rates continue to rise this year which many people believe will happen when the economic recovery takes hold and drives interest rates higher.

Jumbo Mortgage Rates

Even with an increase in loan-to-value ratios if you have a jumbo mortgage you still won't be eligible to refinance since the program is designed for conforming mortgages.  Mortgages that are currently held by a government sponsored entities like Freddie Mac and Fannie Mae.