freddie: Cash Out Refinances Are More Expensive
- 01/11/23 07:48 AM
Cash Out Refinances Are More Expensive In 2022 Fannie/Freddie increased LLPAs (loan level price adjustments) for cash out refinances, making it more costly to pull cash out. Freddie Mac announced for 2023 a seasoning period of 12 months before cash can be pulled out of a property (note date to note date) to pay off a mortgage. When one agency makes an announcement the other follows, so consider this a Fannie/Freddie thing.
Twelve months seasoning affects a cash out Fannie/Freddie loan, one can do a limited cash out (rate/term) after six months.
While these changes make cash out more costly, FHFA (regulator of Fannie/Freddie) announced (1 comments)
freddie: NEW HOME AFFORDABLE REFINANCE PROGRAM CHANGES (HARP)
- 10/26/11 11:31 AM
The Federal Finance Agency along with Fannie and Freddie announced changes to the existing HARP - Home Affordable Refinance Program. Essentially, here are the changes. Eliminating certain risk based pricing adjustments and lowering fees for other borrowers. Currently when a borrower refinances to a 15 year note, a lot of the loan level price adjustments do not apply. I'm not sure how this will change to encourage more borrowers to refinance to shorter terms, but there is some discussion of that. The key to encouraging shorter term mortgages is, naturally, they pay down quicker, build equity quicker and fewer borrowers are underwater. A (0 comments)