Fannie Mae (DU Refi Plus) / Freddie Mac (LP Relief Refinance)

Under the Making Homes Affordable program, responsible homeowners now can refinance their current primary residence up to 125% of the home’s value. This means you can refinance your home for a lower interest rate even when you are “underwater”. The Housing Rescue Plan target millions of homeowners who are struggling to make their mortgage payments and could not refinance using traditional financing.

With traditional financing, mortgage insurance is required if you finance over 80% of your home’s value. With the new Refi Plus program, mortgage insurance is not required up to 125% if your existing loan does not have mortgage insurance. This is a huge plus to you especially if you are struggling to make ends meet.

If you are looking to refinance your current loan and think you may be underwater because your home’s value is substantially lower than what it was before, you may be eligible for this great program.

Here’s a typical example of how this loan program would work for you:

• Current home value:  $160,000.00
• Current loan balance:  $200,000.00
• Current principal and interest payment (6% interest):  $1,219.81
• New Payment with the 125% Refi Plus Loan (5% interest):  $1098.64
• Monthly savings:  $121.17
• Life of loan savings:  $43,621.20

The example above assumes a refinancing of a 30-year fixed to a new 30 year fixed through the Fannie Mae/Freddie Mac Refi Plus Program. Taxes and hazard insurance are not included in the calculation.

Please contact us for more information on the Refi Plus loan program or other great home loan programs that we offer.