1 post tagged “refinancing your home even if the value is less than the current mortgage”

Reasons to Do So:
-Interest rates on mortgage loans have recently declined to levels not seen since the "refi-boom" of 2002-03. 
-All the really bad loan programs are gone. 
-What remains are loans that use common-sense guidelines and require that the borrower can afford to make the payments.  

Key Points for the Fannie Mae Refinance Plus Streamline Loan:
-Owner occupied, second homes and investor properties are eligible
-Liquid assets must cover the funds needed to close
-No limit on multiple mortgage to one borrower for all occupancy types
-Existing mortgage must be current
-LTV 80%+580 minimum credit score - New credit report required
-Income documentation is required 
-Salary/Bonus/Overtime: one current paystub and a verbal Verification of Employment
-If Commissioned or Self Employed: one year tax returns
-Maximum LTV is 105%. Subordinate financing may not be paid off but must be resubordinated.  No new subordinate financing is allowed.
-If the underlying loan does not have mortgage insurance, no mortgage insurance is required on the new loan, regardless of the LTV!
-If the underlying loan has mortgage insurance, the existing MI Company must modify the MI certificate transferring the coverage from the existing loan to the new loan.  The coverage on the new loan must be at the same level as the existing loan, regardless of the new LTV.

Below are two links you can use to see if your mortgage is owned by Fannie Mae or Freddie Mac. Remember, you maybe eligible for a Home Affordable Refinance that will go up to 105% Loan to value.  Only loans owned or guaranteed by Fannie Mae or Freddie Mac are eligible. Your mortgage company can tell you who owns your loan also.  

Fannie Mae                                                
1-800-7FANNIE (8am to 8pm EST)                       
http://loanlookup.fanniemae.com/loanlookup               

Freddie Mac
1-800-FREDDIE (8am - 8PM EST)
https://www.freddiemac.com/corporate

David J Edwards
Real Estate Agent & REALTOR
The David J Edwards Team
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
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The David J Edwards Team specializes in Residential Real Estate for buyers and sellers.