Refinance
Mortgage Refinance Overview
Refinance offers home owners the chance to adjust their mortgage from a previous interest rate to a more advantageous level. New rates offer mortgage holders the opportunity to have lower monthly payment, to cut years off the loan duration, and to save thousands from interest payments.
Different loan programs offer different refinance options and rates. For more information, talk to a loan officer to find the rate that makes sense for you. Here, we show some general characteristics of refinance programs, as well as a primer on the FHA Streamline and the Freddie Mac and Fannie Mae’s Home Affordable Refinance program (HARP and HARP II).
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Home Affordable Refinance Program (UPDATE)
The HARP program was created under President Obama to assist homeowners in refinancing their mortgages, even if they owe more than the
home’s current value. Recently, the FHA unveiled HARP II, which has modified some of the original specifications to reach more borrowers.
Cap of 125 percent Loan-to-Value (LTV) removed.
Must have originated before June 1, 2009.
Loan must already be owned by Freddie Mac or Fannie Mae (you can check on their websites).
http://fanniemae.com/loanlookup/
No delinquencies in past 6 month, and only one over the past 12 months.
No cash out.
No minimum credit score or DTI requirement.
Names on title must remain the same.
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FHA Streamline
Beginning June 11, 2012, FHA will lower its Upfront Mortgage Insurance Premium (UFMIP) to just .01 percent and reduce its annual premium to .55 percent for certain FHA borrowers. FHA hopes to help more borrowers stay in their homes, thereby decreasing the potential for future default and reducing losses to the Mutual Mortgage Insurance (MMI) Fund.
For more information, click over to our FHA page (LINK) and scroll to the bottom of the page.