Mortgage Refinance Program Expands….

Is your home value less than your current mortgage balance? If so, you now have more options now! Recently, the government updated the mortgage refinance guidelines to allow refinances up to 125% of your home value through Fannie Mae, but if your loan was owned by Freddie Mac, you were restricted to facilitating the refinance through your original lender causing confusion and delay.

Beginning October 1st 2009, Freddie Mac will introduce the “Relief Refinance Mortgage – Open Access Program”. This is great news! You are no longer required to go to your original lender or loan servicer to qualify. We are Freddie Mac approved, and can now handle your refinance and help you qualify for the 125% refinance providing you access to competitive rates, great service, and fast closings. If you owe more than your home is worth, now is the time to take action. This is a unique opportunity to lock in a potentially lower interest rate and more manageable monthly payment.

Let’s say your home is worth $300,000. Under the new refinance guidelines, you may qualify for a refinance of up to $375,000 (125% of your current appraised home value). In this example, even if your mortgage balance is $375,000, you can still refinance your loan into a better rate!

To qualify for this refinance program, the following conditions must be met:

1. You must be current on your mortgage payments
2. You must have the ability to prove your income
3. Your mortgage payment history should be clean, however up to one 30 day late payment may be allowed
4. Acceptable credit scores as low as 620 are allowed
5. Mortgage insurance is not required on these refinanced loans unless you have MI on your current mortgage, then you will have to keep it on your refinance transaction
6. If you have a second mortgage (or Home Equity Line of Credit), you maybe be able to consolidate the two loans into one new mortgage
7. Transaction fees up to $2500 can be included in the new loan amount not to exceed 125% of the home’s current value

If you are interested in refinancing your current residence, second home or investment property, the combination of historically low interest rates and improved refinance guidelines may be just what you need to enhance your financial situation

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