125% Refinance Programs - Fannie Mae DU Refi Plus and Freddie Mac Open Access
Nice post detailing the Fannie DU Refi Plus and Freddie Mac Open Access programs. Great job summing it up RJ!
125% Refinance Programs - Fannie Mae DU Refi Plus and Freddie Mac Open Access
The government has gotten aggressive recently and approved two 125% Refinance Programs, the Fannie Mae DU Refi Plus and the Freddie Mac Open Access program.
These programs are referred to as 125% Refinance Programs because they allow home owners to refinance their mortgage even if they owe more than the home is worth. The programs allow for financing to 125% of the value of the home.
Here are a few more key highlights for this great program:
- If you don't have mortgage insurance on your current home loan, you won't on the 125% Refinance Programs.
- Lighter documentation is allowed in some cases.
- Nationwide lending is available.
- Your mortgage must be serviced by Fannie Mae or Freddie Mac in order to qualify.
- Your credit has an impact on the rate you can obtain, but is not a factor on qualifying, as long as you pass the computer underwriting system.
The first step to determining if you are eligible for the 125% Refinance Programs is to see if your mortgage is owned by Fannie Mae or Freddie Mac:
Does Fannie Mae Own Your Mortgage?
Does Freddie Mac Own Your Mortgage?
From there, you need to talk to a lender who has access to your state and the lenders who offer the 125% Refinance Program. First Mortgage Corp has the banks to help you, if you would like to give us a call for a free consultation.
The next step is to determine if the 125% Refinance Program will provide a strong enough benefit to make it worth pursuing. Benefits of this program may be payment reduction, refinancing out of an adjustable mortgage, shortening your loan term, or refinancing from an interest-only mortgage to a full principal and interest payment.
Rates on the 125% Refinance Programs will be slightly higher than on traditional programs, and will be determined by your credit score and how you choose to structure your refinance. Up to $5000 in closing costs can be rolled into the mortgage, so that money can be used to obtain a lower interest rate, or we can show you options which will result in no closing costs.
125% Refinance Programs can be a great option to get into a more stable, lower payment mortgage. We would be honored to answer any questions you have about this program!
RJ Baxter First Mortgage Corp
Branch Manager
303-670-0137 (direct)
27902 Meadow Drive, Suite 120
Evergreen, Colorado 80439
Comments(1)