Good News On Refinancing for Frederick Homeowners
A New and Better Deal There is positive news about Fannie and Freddie refinancing that should keep many borrowers from falling into foreclosure. HUD announced that it will expand its loan-to-value ratios for refinances; specifically the expansion will include borrowers who are current on payments but whose mortgages are worth up to 125% of the home's value. The primary criticism of the current 105% loan-to-value ratio is that it excludes borrowers who purchased their homes three years ago, when prices were just hitting their peak.
Freddie Mac is further sweetening the refinancing pot by encouraging borrows with 30-year fixed-rate mortgages to consider a shorter 25-year term by providing a special price incentive to lenders. The incentive only applies to Relief Refinance Mortgages with LTV ratios between 105% and 125%. Freddie Mac's Relief Refinance Mortgage allows borrowers to finance closing costs, financing costs, and prepaids/escrows up to $5,000 or 4% of the current unpaid principal balance of the mortgage being refinanced, whichever is less. What's more, mortgage insurance is not required if the existing mortgage does not require MI.
Many potential borrowers have been dissuaded from taking advantaging of a favorable refinancing market because they think they are too far underwater to bother. These new programs give them a powerful incentive to bother and get that money-saving lower-rate loan they need.
Check out Fannie Mae and Freddie Mac websites.
_____________________________________________________________
The Highland Group
Chris & Karen Highland * 301-831-9947
Turning Point Real Estate – 301-831-8232
email us: isell4u2@msn.com
Text Us: 301-401-5119