According to this report http://www.dsnews.com/articles/freddie-mac-releases-new-guidelines-for-refinancing-and-underwriting-2011-01-19 Freddie Mac is issuing new underwriting guidelines for loans that close after May 1, 2011 that will among other things eliminate the "streamlined refinance" which allowed existing Freddie Mac borrowers to refinance up to 95% LTV and to roll in closing costs. I am not sure how much this program was used, but it was one of the few out there that made sense to me. Freddie Mac already owned a loan on a house that was in the vicinity of the same LTV or even higher, why not allow their current borrower to be able to take advantage of the lower rates? I may be missing something here, but why not let an existing borrower refinance to a lower rate? This is one of the many things that mystify me about lenders - you already have a paying borrower at a higher rate, why not let the borrower refinance? The borrower will get the benefit of a lower payment, which can only increase the chances that the loan will continue to perform.
It seems to me that if your loan is owned by Freddie Mac now is the time to refinance so you can still go up to 95% LTV. If any mortgage brokers or loan officers know anything more about this I would appreciate their comments.
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