Have you heard of short payoff refinancing?

If you haven’t heard of short payoff refinancing, you’re not alone. Not all lenders offer it, so it’s not a program many homeowners are aware of. However, if you’re one who is feeling the financial pressure of high mortgage payments that exceed the value of your home, this refinancing program could be the discovery of the year for you.

Traditional refinancing provides a lower interest rate to your existing loan, which is based on the value of your home at the time of that loan. Home values today, as everyone knows, have plummeted, leaving homeowners paying more than their home is worth. Combined with our economic hardship, it’s also leaving homeowners struggling to stay in their homes.

Short payoff refinancing helps homeowners to stay in their home by negotiating a lower loan amount with the existing lender. Once agreed, that opens the door for a new, re-financed loan that pays off the reduced loan with your existing lender. The refinanced loan is through FHA with a 97.5% loan-to-value amount. The current home loan payments cannot be behind.

With the economy not improving as predicted and more homeowners facing foreclosure, the short payoff refinancing can be an appealing option for a bank or mortgage company. By agreeing to a reduced loan, they are not left with a larger short-sale debt or sizable foreclosure on their books. The short payoff refinancing helps lending institutions as well as homeowners, as it is far more advantageous than traditional refinancing. But only if it’s not too late and you haven’t fallen behind with payments.

Delta Home Loans is one of the few lenders offering this unique refinancing program. With this program, a good negotiator is critical in getting your existing lender to agree to a payoff at a lower amount. This is where our expertise and negotiating skills can be of utmost value to you. Don’t wait. Save your home, give us a call! (530) 478-8383.