If you have a Fannie Mae loan that closed before March 2009, you are eligible for expanded refinance options provided by the government sponsorship of Fannie Mae through our company. Please note, we offer ALL refi Plus options and most lenders don't.
Not sure if you have a Fannie Mae Loan - check here
- or call your loan servicer.
Description of what the program offers.
Loan amounts below 95% of home value; The interest rate is the same as any normal refinance with no morgtgage insurance requirement.
Example. Appraised value $200,000, loan amount $190,000 or less, interest rate of 4.375 APR (no net points)
Loan amounts above 95% of home value to 105% of home value; There is a cost of 1 point for the same rate or no points with an increase of .25% on the interest rate.
Example. Same rate as above of 4.375% plus 1 point or add .25 for 4.625% rate
Loans with Home Equity lines or second mortgage also qualify
For combined loan amounts below 95%, the rate is the same as a regular refinance
For combined loan amounts above 95%, there is a cost of 1.5% or a rate rise of .375%.
Our lenders allow unlimited combined loan to value of home. Example. If you owe $95,000 and have an existing home equity loan of $100,000 with a house value of $100,000, You are at 95k/100k or 95% loan to value on your first mortgage and there is no 1 point cost
You are at $195k/$100k or 195% loan to value and this would have a 1.5% cost for the same rate as a regular refinance
Before paying for an appraisal, we advise that you make certain the holder of the second mortgage will subordinate or allow us to close the new first mortgage. Sometimes there is a charge of $100 to $250 for subordinating a second mortgage. Some banks will only subordinate if they redo the first mortgage and this usually means a higher interest rate.
We usually provide the worst case scenario when determining if the loan to value is above or below 95% or combined loan to value over 95%.