Here is an update to the Home Affordable plan that was set in play earlier this week.
Home Affordable Refinance is the second part of this plan, which is not to be confused with the modification program. While there is much information out there on these programs, most of the information is very limited to the specific details to the programs. The reason for this is because no one really knows until the programs are officially rolled out in April.
Here is what we do know at this time:
- Additional Flexibilities: Most borrowers refinancing an existing Fannie Mae loan will not be required to buy new or additional mortgage insurance if the loan at the time of the refinance is more than 80 percent of a home’s value. Any existing mortgage insurance may be carried forward to the new loan. In addition, Fannie Mae can refinance loans up to 105 percent of a home’s value with this new flexibility, so even borrowers who are “underwater” — who owe more than their home is worth — may be able to refinance. This will expand the number of borrowers able to take advantage of lower interest rates that reduce monthly payments, or refinance into a more sustainable mortgage.
- Streamlined Processing: Beginning in Knightlines Mortgage Services, LLC will be able to process an application to refinance any existing Fannie Mae loan, allowing for greater lender origination capacity and easier refinancing for borrowers.
To qualify:
- Your mortgage loan must be owned by Fannie Mae.
- You must have a solid payment history on your existing mortgage.
This program is for a limited time, as the expanded fexibility ends June of 2010.
If you want to take advantage this program, call us today to get your application ready for submission when April arrives.
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