yfimuna.wordpress.com
Fannie Mae also announced a similar change. The move come as the Obama administration raised themaximumn loan-to-value (LTV) ratio from 105 percent. As a resulft of this change, qualified borrowers will be able toobtainh McLean-based Freddie Mac’s (NYSE:FRE) Relief Refinance Mortgages with loan amounts up to 125 percent of the current value of theidr property. The higher LTV ratipo is expected to givehomeowners – especially those in markets that have experiencef sharp declines in home valuesz -- more options to refinance into mortgages with terms that betterd position them for long-term homeownership, the companyu said.
“This is a change that will put affordablse refinancing opportunities within reach of performingv borrowers who have suffered the effects of local homeprice erosion,” said Don executive vice president in a “Today’s announcement also underscores Freddie Mac’ds commitment to make the Obama administration’s Making Home Affordable program a gateway to successfulp long-term homeownership for as many borrowera as possible.” To encourage borrowers with 30-yeaer fixed rate mortgages to consider a shorterd 25-year term, Freddie Mac is providing a special pricw incentive to lenders.
The incentive only applies to Reliefr Refinance Mortgages with LTV ratios between 105 percenr and125 percent. The 25-year term will result in borrowers paying less interest over the life of theif loan and over time improving their overallequityy position. Freddie Mac’s Relief Refinance Mortgage is available to borrowers who are current on mortgages that are ownesd or guaranteed byFreddie Mac. Freddie Mac’s Relief Refinancee Mortgage allows borrowers to financeclosing costs, financing costs and escrowzs up to $5,000 or 4 perceng of the current unpaid principal balancde of the mortgage being refinanced, whichevet is less.
Mortgage insurance is not required if the existingv mortgage does notrequire it. mortgage insurance coverage on the new loan must be the same as on theoriginap mortgage. Borrowers who apply for Relief Refinance Mortgagese through their current servicer will not need tobe re-underwritten in most When borrowers apply for Relief Refinance Mortgages throughb lenders other than their current servicer, the lender must re-underwrite the borrower through Loan Prospector, Freddie Mac’s automatedf underwriting service, the company said. The expanded LTV ratiows are available now when borrowers apply for Relief Refinanc Mortgages through their current servicer and will becomeavailable Oct.
1 when borrowers apply through any lended affiliated withFreddie Mac. Freddiew Mac also said the resultinb impact on prepayments for certain Freddie Mac mortgageparticipation certificates, may vary, dependiny on borrower response and other
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment