Fred was kind enough to make this information available for a re-blog.
So, what do we do when attempting to refinance a property and all of a sudden the value of the property comes in significantly lower than we expected???? Case in point, I am doing a rate and term refinance for a previous customer that purchased their home two years ago (during the height of real estate values for about $400,000. To accomplish an 80% refinance, I only need it to come in at $325,000 but the actual value comes in at $315,000, a huge drop in value and a loan to value of over 82%. So, what do I do? I go to a Fannie Mae DU Plus. This is all part of the Making Homes Affordable Program through Fannie Mae and Freddie Mac.
This program allows me to finance a rate and term for my clients at greater than 80% loan to value with no mortgage insurance. And, because they have excellent credit scores, there is no adjustment to the rate. A definite win-win situation. They get a lower rate with no mortgage insurance and I get to keep them happy.
Now, before everyone jumps up and says, “That is for me!” there are a few conditions. First of all, it has to be a Fannie Mae owned loan. You can find out if yours is here:
http://loanlookup.fanniemae.com/loanlookup/. Next, if there is currently mortgage insurance on your loan, it is probable that only the current servicer will be able to do the refinance. I know for a fact, that I can’t.
But, what if it is Freddie Mac owned? Basically, those loans have to go back to the current servicer. Now, if you have a Freddie Mac loan that is serviced by Wells Fargo, then I can help you with it, but it will be originated through Wells Fargo. Personally, I think I will get you a better deal if you go though me rather that direct to Wells Fargo, but that is my opinion, check it out for yourself.There is a definite possibility that we can also work with other servicing companies on Freddie Mac loans, but will have to check on each one individually. To find out if your loan is owed by Freddie Mac, check here: www.freddiemac.com/mymortgage.
The product is also available for investment property, which means you can get a lower rate on that rental also. You do need to be current on the mortgage and if you have a second, they will need to subordinate to get this product. So, after finding out if you have either a Fannie Mae or Freddie Mac loan, give me a call and let’s see what we can do to put you into better financial position. Every loan application is different. We are not in a cookie cutter business, let me tailor make your new loan.
Disclaimer: Any comments and contributions provided on ActiveRain.com (or other electronic or print media) does not establish an agency relationship with any third party. Blog posts are intended to be informational only. Please be advised that real estate practices vary in regions and from state to state and market to market. The information contained herein does not constitute legal advice. All parties in need of legal, accounting, tax, or real estate guidance are directed to consult with the licensed professional of their choice. Please seek specific guidance from a retained professional in the specific field(s) required to service your interests. I and/or team blog writers make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this web site and its associated sites inclusive of but not limited to CarolynTannStarr.com MySpace/TannStarr 46486 NY Working Moms Examiner ActiveRain Group Club Chaos ClubChaosAgents.com CyberMinions.net CTannStarr Outside Blog CTannStarr Localism Blog TannStarr.net UberMental.com
© Carolyn Tann-Starr, 2008-2015. Unauthorized use and/or duplication of this material without express and written permission from the re-blog authors (when appropriate)and Carolyn Tann-Starr is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Carolyn Tann-Starr, (the re-blog authors when appropriate) and Wordy C's Blog with appropriate and specific direction to the original content.