Do you live in Florida and are you currently underwater on your mortgage? Well Fannie Mae and Freddie Mac have relaxed there requirements on refinancing those underwater mortgage loans held by them. As of October 1, 2009 borrowers will be able to refinance their home loan up to 125% of the appraised value. Currently Fannie Mae and Freddie Mac allow refinances to 105% of appraised value. This new hike to 125% should bring refinance relief to a lot of homeowner who have been locked out of the refinance market because they owe more then their property is worth. One of the great features of this new Refinance Plus loan is that if you originally put more than 20% down and you did not have PMI on your mortgage, you will not be required to pay PMI on your new loan!
Investors who buy these loans will be taking a cautious look at this opportunity- lets hope they buy in.
Comments(0)