Lets make this a quick and to the point post on what the advantages of refinancing your mortgage with these Refinance Plus Mortgages are.
- This program was designed solely for homeowners that originally bought their home, and their loan was underwritten through a Fannie Mae mortgage…most conventional lending programs are Fannie Mae and Freddie Mac
- Why this program is unique, you might ask? The make up of the loan was designed to help those homeowners who have loan amounts equal to or greater than what their home is worth, typically due to the falling price of homes in America. Regarding my mention of the “equal to or greater” comment, that is not a must, because a home owner might have a loan amount just under the appraised value, and get the same benefit.
- You have heard the mortgage advertisements on TV and radio. Rates are still at historic lows. The government is using this refinance product to help provide relief to those families who have high loan to values as I mentioned in #2 above. Normally, in a refinance, closing costs are rolled in, but when you have no equity, you either do not meet underwriting guidelines and flatly can not refinance, or you barely have the equity to refinance but do not have the extra equity to roll in closing costs and can’t very well afford to come out of pocket either. This program allows for SUPER HIGH LOAN TO VALUES…you can actually have a loan amount greater than the value of your home.
- What is the biggest benefit in this refinance program? Wait for the delivery!!!(: You get the same low rate as if you had loads of equity in your home. Yeah, you will drop your payment like crazy.