Freddie Mac Open Access Program - Evergreen, CO
As part of the government's Making Home Affordable refinance program, the Freddie Mac Open Access program was released recently. This new program helps families with Freddie Mac backed mortgages to refinance under the initiative, where previously they may not have been able to take advantage of this program.
The major change is that home owners are now allowed to go to a new bank to obtain the Freddie Mac Open Access mortgage, where previously, they had to go directly to their servicer. This was a big announcement as a large percentage of home owners were unable to take advantage of the low rates we have been seeing prior to the change.
In addition to this change, home owners also can now refinance if they owe up to 125% of their home's value, where previously, the limit was 105%, unrealistic in some areas.
Here are some of the highlight of the Freddie Mac Open Access Program:
- Can refinance at up to 125% of your home's value.
- Can roll in up to $5000 in closing costs into the new mortgage, or 4% of your loan amount, whichever is lesser.
- Must be current on all payments with no late payments over the past 12 months.
- Cannot add borrowers to the mortgage.
- If you don't have mortgage insurance currently, you won't have it on the new mortgage, even if you are at > 80% loan-to-value ratio.
- Full appraisal required.
- Must be employed- underwriting is "full doc," so income must be verified and must be sufficient to support the debt.
- must show benefit to borrower- lower payment, refinance out of an ARM or interest only, or shorten term.
The Freddie Mac Open Access program has helped many people refinance over the past couple months, and should help many more before rates go up.
Comments(0)