Refinancing with Fannie Mae or Freddie Mac?

In general, how difficult is it to refinance a mortgage with Fannie Mae or Freddie Mac. Heard recently that their caps have been raised 2% and that future cap increases will allow more borrowers to refinance out of predatory loans. What steps need to be taken in order to initiate such a refinance other than simply contacting a lending partner of those two agencies?

Ok, here’s my situation…

My home was purchased in 2005 for 135k. My mortgage was a 120k for a 30 year fixed at 6.5% interest. Currently I owe 117,000 on the mortgage. Due to change in employment, I need to Re-Fi at the current rates (4.65%) to drastically drop my monthly payment…

Herein lies the problem: My homes value has depreciated so much due to the current market situation, that my home probably would not appraise for what I owe. I’ve contacted my original mortgage agent and he said in order to Re-Fi, I would need to order an appraisal and bring around 20k to closing to make it work… I don’t have that kind of liquidity.

Unfortunately, I lost my job in Jan. but luckily landed a new one in Feb. However, my new job pays around 40% less which means I eventually will not be able to make all my payments on a monthly basis.

My next step is to call my lender and see what they can do. However, I have heard that you need to miss at least two consecutive mortgage payments before they will work with you… The last thing I want to do is miss any mortgage payments, but with my current situation, within 3-6 months, I will not be able to make my mortgage payment at the current rate…

I have been doing a lot of research on this, and I have heard that the last thing a lender wants to do is take on ANOTHER foreclosure. By defaulting on purpose, the lender will be forced to refi my mortgage at current market values. Is this true?

My credit is outstanding and I have never missed a mortgage payment in the past. If I need to miss a few months of mortgage payments in order for my lender to refi my loan to a 4.75%, I am willing to do so.

My name is the only one on the mortgage… By missing payments, will that affect my wife’s credit too?

Any advice?? Please no solicitors…

Thanks in advance for the help!

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