Take advantage of those low interest rates! Refinancing now available without Mortgage Insurance.

Finally! A reward for homeowners who have been faithfully paying their mortgages and would like to take advantage of today’s great interest rates by refinancing their homes. Until now, homeowners have been pretty much out of luck unless they have a lot of equity in their homes. Due to the decline in home values, many homeowners have been shut out of the refinancing option. Didn’t matter how great a creditor you were or how high your credit scores, if you wanted to refinance you home and didn’t have 20% equity in it, you were automatically going to be penalized with mortgage insurance..and don’t get me started on how unfair that is.

In response to the Homeowner Affordability and Stability Plan, there is now a new refinance option. The Fannie Mae Refi Plus Program is a fixed rate, fully amortizing, conventional conforming first lien mortgage loan program.

The Refi Plus Program is designed to allow individuals refinance their properties at historical low interest rates in areas of the country where home values have declined.

Features of the Refi Plus Program:
• Loans up to 105% of the value of your home
• Primary Homes -105%
• Second Homes – 105%
• Investment Properties – 105%
• 620 Fico Scores
• Loan amounts to 417,000
• No limit to the number of properties owned
• Loan must be a Fannie Mae Loan
• Salaried borrowers require one paystub
• Self-employed borrowers require one year’s federal tax return
• No mortgage insurance required if you do not currently have it
• Existing mortgage insurance remains same if you have it
• Existing second mortgages must remain in place

Sounds too good to be true, doesn’t it? But it’s not. I’m in the process right now of refinancing my home without the penalty of Mortgage Insurance which is going to save me almost $400 a month.

Seems to me that if this small step had been taken 3 years ago…homeowners in those lousy interest only programs would not have lost their homes and we wouldn’t be in the state we’re in today. I guess it’s better late than never!

Comments

  1. If only this had happened sooner…it’s a shame too because a friend of mine lost is house and had to move back in with his parents.

    Fortunately for me, I just refinanced and am saving enough money to afford a new car.