If you are a homeowner in the United States, then you will be receiving a letter from the American Community Survey (ACS) for the purpose of determining your application for mortgage loans. This letter comes with a letter that explains your loan options and will tell you of any other information that may be required to complete your application.
My wife and I have been taking advantage of the ACS loan program for several months now. Since we are both homeowners, we know the different credit score ranges and therefore can decide how much we want to borrow to pay down our mortgage. However, our first mortgage was a 30 year fixed mortgage that we are refinancing with a 4.6% interest rate that we will pay off the mortgage in two years. We have a FICO score of about 720.
Our score is quite high, and we have a lot of experience with refinancing mortgages. But since our loan is a fixed rate loan that we are refinancing, we are not eligible for the loan program that is used by the HOPE Funds loan program. We are therefore looking into other options for refinancing our mortgage.
We have been having discussions about our loan with a local lender and this is the first option that we have seriously considered. This is an option that we believe has merit, but we have not yet decided what to do, other than to proceed with our mortgage refinancing.
You can check out our article on their website for more information on this issue.
One of the things that you don’t want to do is to get a loan with HOPE Funds. It is an excellent program, and for our purposes it is a very good program on its own. The downside, however, is that you won’t be able to refinance the loan again.
This is something that we consider, but we haven’t yet decided what to do because we have heard horror stories from people who have had to use HOPE Funds on their mortgages and then been unable to refinance again. If you’re in the market for a home in the San Diego area or an area in the greater area of the US that has HOPE Funds, we don’t believe you should use it on a mortgage that has a 30 year amortization.
It sucks, but unfortunately the amortization is based on the existing cost of the loan. That means that if you make the loan in your first 3+ years of ownership, then you are also on the hook for the amortization of the loan after that. In other words, if you make a loan, be prepared to pay it off at any time.
That is true. We’re not sure if it’s a direct result of this or if they were just trying to scare us into not using the HOPE Funds. It is a terrible decision to use HOPE funds on a loan that has a 30 year amortization.