105% Fannie Mae Refinances!

For people whose home values have declined, here is a Fannie Mae program that has recently been established for the purpose of helping those homeowners who have seen their homes value drop, but still would like to capitalize on these low refinance rates. Fannie Mae is allowing borrowers to go up to 105% of the properties current value without requiring new mortgage insurance - which is a great deal! We have been seeing a lot of people getting help from this program, maybe it can help you as well. Below is the information published directly from Fannie Mae's website:


WASHINGTON DC -- Fannie Mae (FNM/NYSE) has begun making initiatives on its Home Affordable Refinance program, available to its servicers and borrowers as part of the Obama Administration's Making Home Affordable program. The initiatives are designed to significantly expand the numbers of borrowers who can refinance or modify their mortgages to a payment that is affordable now and into the future.

"Making Home Affordable provides crucial tools to mortgage lenders and homeowners coping with financial hardship and declining home prices," said Herb Allison, president and chief executive officer. "Potentially millions of homeowners could qualify for and benefit from these initiatives. The people of Fannie Mae will do all they can to make the program a success for homeowners across America and to advance the nation's housing recovery."

Home Affordable Refinance

Home Affordable Refinance includes new refinancing flexibilities for homeowners whose loans are owned by Fannie Mae. Key features include:

Additional Flexibilities: Most borrowers refinancing an existing Fannie Mae loan will not be required to buy new or additional mortgage insurance if the loan at the time of the refinance is more than 80 percent of a home's value. Any existing mortgage insurance may be carried forward to the new loan. In addition, Fannie Mae can refinance loans up to 105 percent of a home's value with this new flexibility, so even borrowers who are "underwater" -- who owe more than their home is worth -- may be able to refinance. This will expand the number of borrowers able to take advantage of lower interest rates that reduce monthly payments, or refinance into a more sustainable mortgage.

Streamlined Processing: Beginning in April, all 1,600 lenders and 29,000 mortgage brokers using Fannie Mae's Desktop Underwriter® platform will be able to process an application to refinance any existing Fannie Mae loan, allowing for greater lender origination capacity and easier refinancing for borrowers.

What Borrowers Need to Know:

• To qualify, your mortgage loan must be owned by Fannie Mae.
• You must have a solid payment history on your existing mortgage.
• The expanded refinance flexibility ends in June 2010.

Contact George with any questions regarding this Fannie Mae Home Affordability Refinance at 650.558.5326 or via email at george@redoakcorp.com