Frequently Asked Questions

What is "Making Home Affordable" all about?
Making Home Affordable is part of President Obama's comprehensive strategy to get the housing market back on track. Through the Making Home Affordable Program, American families may be eligible to refinance or modify their loans to a payment that is affordable now and into the future if they meet the established criteria.

I'm current on my mortgage. Will Navy Federal's Home Affordable Refinance help me?
Homeowners who have a solid payment history on their mortgages, but have been unable to refinance because their homes have decreased in value, may now have the opportunity to refinance if their loan-to-value ratio is currently below 125%. Note, too, that this program will be available through June 2010.

I owe more than my property is worth. Do I still qualify to refinance under the Making Home Affordable Program?
Eligible loans will include those where the first mortgage will not exceed 125% of the current market value of the property. For example, if your property is worth $240,000, but you owe $300,000 or less, you may qualify. The current value of your property will be determined after you apply to refinance. You will be required to pay for an appraisal.

I have both a first and a second mortgage (also known as an equity loan or equity line of credit). Do I still qualify to refinance under Making Home Affordable?
As long as the amount due on the first mortgage is less than 125% of the value of the property, borrowers may be eligible for Navy Federal's Home Affordable Refinance. Your eligibility will depend, in part, on an agreement by the lender that has your second mortgage, and on your ability to meet the new payment terms on the first mortgage.

What are the interest rate and other terms of this refinance offer?
The objective of Navy Federal's Home Affordable Refinance is to provide borrowers with a safe loan program with a fixed, affordable payment. The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by the lender. Our interest rates vary over time as market rates adjust. The refinanced loans will have no prepayment penalties.

Can I get cash out to pay other debts?
No.

Will I have to pay closing costs?
You will be allowed to finance up to $5,000 or 4% (whichever is less) of the closing costs. However, you still cannot exceed the maximum loan-to-value.

How do I apply for Navy Federal's Home Affordable Refinance?
You can visit our self-assessment tool on navyfederal.org to submit your information. Once submitted, a mortgage specialist will contact you.

When will I be contacted by a mortgage specialist?
Due to the large volume, this process may take up to 30 days from when we receive your information.

I may be eligible for the Home Affordable Refinance or Modification Program, and I have submitted my information using the self-assessment tool. Should I wait until a mortgage specialist contacts me before I make the next mortgage payment?
No. Continue making your mortgage payments as scheduled. It could take up to 30 days for a mortgage specialist to contact you.

I am delinquent on my mortgage. Will I qualify for Navy Federal's Home Affordable Refinance?
No. Borrowers who are currently delinquent on their mortgage will not qualify for a refinance. You may be eligible for a Home Affordable Modification.

Do I need to be behind on my mortgage payments to be eligible for a Home Affordable Modification?
No. If the borrower has had a change in circumstances that caused a significant financial hardship, they may be eligible. The following financial hardships qualify for this program:

• A reduction or loss of income
• Change in household financial circumstances
• Increase in expenses, and excessive monthly debt payments
• Material change in circumstances

Navy Federal must ask information about the following items. Each of these elements will be verified through documentation:

• Monthly gross income of your household, including recent pay stubs or documentation of income
• Your most recent income tax return
• Information about any second mortgage on your home
• Payments on each of your credit cards
• Payments on any other loans
• Other monthly obligations

This program will be available through June 2010.