A couple called me in regards to a newspaper article I had written about home loan refinancing. After reviewing their credit, income, the current loan balance and estimated value of their home I was able to offer them a loan product provided by Making Home Affordable. Their current loan is a Fannie Mae loan so they can qualify for the DU Refi Plus loan program.
They were able to reduce their interest rate from 5.625% to 3.841% and reduce their housing payment by $250 per month. They have a home equity loan that will be paid off in 32 months. That loan will remain in second position. Their loan to value is over 90% but the will not have to pay PMI because they currently are not required to pay PMI.
There is no minimum credit score. No appraisal is required. The only out of pocket expense will be to their bank to resubordinate their second mortgage. This worked out very well for this couple.
A lot of people think they can't refinance if they don't have 20% equity in their home but it simply isn't true as this example shows.
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