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Home affordable refinance, who is offering it?

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October 15 - US
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Answers (8)

Profile picture for mcegelsk
Does the open access allow a Freddie Mac backed mortgage to be shopped around to lenders other than the current servicer?  I ment to state my current mortgage is at 6.5 and my current servicer is offering 6.0, they are saying they will waive their 1%, offer .25 points for the 6.0% and I can roll closing costs which all would equate to ~$6500, but that would only save me ~$180 which doesn't change things significantly enough.  Someone emailed me from here about a Short Pay Refi, which I'm not sure I'm comfortable with but am running out of other options. 
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October 15
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Yes, the 125 is available, but the terms available above 105 at least in my experience are not very attractive and would only be likely to benefit someone who is paying 6.75% or more on the current loan.  (assuming refincance from one 30 year into another 30 year).

Also, the 125 only become available via "Open Access" 2 weeks ago.  Prior to that you could only work with the existing servicer.
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October 15
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Isn't LTV limit changed to  125% a while ago ?
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October 15
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Since January 2009

Over 105 on Freddie it will be difficult to improve from current rate 6%.   The Fannie program leaves an opening for rate buydowns, but Freddie caps the maximum closing costs at 5,000.

The program only became available 2 weeks ago, so I would advise to just sit tight for now and then check again in another month or two.  I'm hoping more lenders will offer it and the terms available might become more attractive.
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October 15
Profile picture for mcegelsk
Thank you all.  I'm at 118%, in Virginia. it is at 6% fixed 30 (non va) so I'm looking for options.  Its backed by Freddie. I'm I'm completely current, but that may get difficult in the next six months.
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October 15
Profile picture for Scobe
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Since November 2009

You must be in a Conventional loan, and do you pay Mortgage insurance even if you have a conventional loan.  If you have MI insurance then you do not Quailify for that program. Like Justin said some offer up to 105% LTV some will only go up to 95%.... Just keep these things in mind....

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October 15
Profile picture for Nida M
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Since August 2009

mceglesk,

Try putting in a loan request and you will get loan quotes from different lenders.  Put in your notes that you are interested in this program.  You can also contact lenders here in advice or go through the directory. 

Good luck!
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October 15
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The program is widely available for loans up to 105%.  Above 105% options are limited, but out there.  What area are you in?  Is your loan Fannie or Freddie?  What LTV are you at?
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October 15
 

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