No Rate and Fee Hits for Investment Property Refinance!

There are several loan programs that have been born out of the Making Home Affordable plan put forth by the Obama administration. There are two distinctive refinance programs, one for Fannie Mae backed loans and another for Freddie Mac backed loans. The Fannie Mae refinance loan, the Fannie Mae DU Refi Plus loan, is available at many lenders and has similar pricing parameters as conventional loans that we have come accustomed to, like charging more fees or offering a higher rate to a borrower with a lower credit score for example.

The Freddie Mac version of the refinance loan, the Freddie Mac Relief Refinance Mortgage, is not nearly as available as the Fannie Mae program. The Freddie program has one limitation on the Fannie version. This limitation is that the new loan can only exceed the existing mortgage $2,500 to accommodate closing costs. This is a very minor limitation when you consider the large upside to the Freddie loan - it has an absence of rate and fee adjustments for almost every loan characteristic.

A 2-unit, non-owner occupied property gets the same rate for the same fees that a single-family, owner-occupied property does!!!!

A couple other things to point out about this program:

-The new loan is limited to 105% LTV, 105%!
-If the current loan does not have MI, the new loan won't either.
-This loan program is stated income - stated asset.

These programs are limited to rate and term refinances designed specifically to help borrowers lower they monthly mortgage payment, which encourages them to stay in their homes, reducing the number of foreclosures. If you or someone you know would like to determine if you qualify for this great program, start by determining if you are eligible here and who backs you loan here. Then call/email me with this info along who services your loan - the bank you make your payments to that you think "owns" your loan but really doesn't, which is probably a topic for a different post.