Vacation home owners, listen up: The mortgage relief plan unveiled this week may be able to help you, too.
The Washington Post reported that rules under the Fannie Mae and Freddie Mac program dubbed “Making Home Affordable” also apply to vacation homes and one-to-four unit rental properties. So if you’re finding it tough to keep up with the payments on your existing home and getaway–whether that’s a Florida vacation home or South Carolina vacation rental–it would a no-brainer to call your lender to see if you qualify.
Unfortunately, those who recently lost their jobs or whose existing loans exceed current Fannie Mae or Freddie Mac requirements ($417,000 in most states and $729,750 in more expensive states such as California or New York) may not be eligible, but for those who have not been late on their mortgage payments more than 30 days in the last year, the potential to refinance is there. With rates hovering between the high 4s and 5.25 percent, the time to dial in a lower payment is now.
So what’s stopping you? Ask your lender about loan modification requirements. It could be one bright light in this bad economy: A potential savings of hundreds a month.