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Home Affordable Refinance Plus
If you are a homeowner and are current on your mortgage payments but unable to refinance to a lower interest rate because your home value has decreased our Home Affordable Refinance Plus program may help you!
The benefits of the Home Affordable Refinance Plus program:
- Reduced loan documentation requirements
- A new appraisal may not be required
- Mortgage insurance (MI) may not be required
- Relaxed credit score requirements
- Lower your interest rate even if your home has decreased in value
- Your loan balance is nearly equal the current property value
- Flexibility on mortgage insurance (MI): if your existing loan does not have MI; your new loan will not require MI
- Refinance to a 30 year fixed rate or 15 year fixed rate mortgage
- Receive the current low market interest rate
How am I eligible?
Answering "Yes" to the below questions means you are likely eligible for the Home Affordable Refinance Plus program!
- Are you the owner of a one-to-four unit home?
- Are you a current Fannie Mae customer?
http://loanlookup.fanniemae.com/loanlookup/ - Are you current on your mortgage payments?
*current means you haven't been more than 30-days late on your mortgage payment in the last 12 months or if you have had the loan for less than 12 months you have never missed a payment. - Your existing first mortgage balance is about the same or less than the current value of your house?
- You have income to support the new mortgage payments.
- The refinance lowers your payment or improves stability of your loan:
- converting from adjustable rate mortgage to a fixed rate
- converting from an interest only to a fixed rate
- converting from a balloon mortgage to a fixed rate
How do I know if my loan is owned by Fannie Mae?
Go to: http://loanlookup.fanniemae.com/loanlookup/ and see if your property address is a match. You can also contact the current servicer of your mortgage to verify this information.
I may owe on my property than it is worth. Do I still qualify?
The new mortgage can not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less on your existing first mortgage you may qualify. The current value of your property will be determined after you apply to refinance.
What if I have both a first and second mortgage?
Any subordinate liens (i.e. second mortgages, junior liens, home equity loans, home equity lines of credit) can not be financed with the new first mortgage. Your eligibility will depend on if your second mortgage lender will agree to remain in second position (called re-subordination agreement) to the new payment terms on the first mortgage. The total amount owed can not exceed 105% of the current market value.
Can I get cash out to pay other debts or for home improvements?
No. A limited amount of cash back is permitted which is the "lesser" of $2000 or 2% of the new mortgage loan amount. For example, a new mortgage of $200,000 permits cash back of $2000.
Will mortgage insurance (MI) be required?
If your existing loan has private mortgage insurance, you will need the same amount of insurance coverage for the refinanced loan. If your existing loan does not have private mortgage insurance it will not be required for the new loan even if your new loan balance will exceed 80% of the current market value of the property.
What programs are eligible for the new loan?
We offer a 30 year fixed rate mortgage and 15 year fixed rate mortgage. This product is called "home affordable refinance plus" in our Loan Consultant Loan Options under Fixed Rate loans.
CHECK LOAN OPTIONS WITH OUR ONLINE LOAN CONSULTANT
CALL NOW for more information: 877.562.6862 toll free
All Program guidelines subject to change without notice.