California Refinance Your Freddie Mac Loan
Attention California Homeowners-The Government’s Freddie Mac Relief Refinance Mortgage rules:
The governmenst main objective is to assit borrowers of Freddie Mac guaranteed, insured home loans, to keep their homes affordable and reduce foreclosures by keeping payments affordable. Under Freddie Mac’s Home Affordable Refinance program, known as the Relief Refinance Mortgage, the program may be used to reduce the borrower’s loan interest rate, shorten the loan term repayment period or replace an adjustable-rate mortgage, interest-only mortgage or balloon/reset mortgage with a fixed-rate loan.
How to qualify for the new refinance program, first the borrower must have an existing mortgage that is owned or guaranteed by Freddie Mac. To find out whether Freddie Mac owns or guarantees your loan, call (800) 373-3343, call your loan servicer or search for your loan on Freddie Mac’s Web site at Freddie Mac.org.
You should contact your original lender or loan servicer to apply for this program.
The property may be a vacation/second home if the existing mortgage was originated as a second-home loan or the borrower now occupies the home as a principal residence.
The new Freddie Mac Refinance mortgage can be a 15-, 20- or 30-year, fixed-rate loan or an adjustable-rate mortgage with an initial term of five, seven or 10 years. The loan must be fully amortizing (i.e., not an interest-only or payment-option loan).
If you have an existing fixed-rate mortgage, than the lender can not refinance with an ” ARM” Adjustable Rate Mortgage.
The loan, may be a so-called “super-conforming” loan limit within the applicable loan limit for the area.
The property may be an investment property if the existing mortgage was originated as an investment property or the borrower now occupies the home as a principal residence.
If the original loan is covered by mortgage insurance, the insurer must agree to transfer the insurance to the new loan.
The new loan cannot be used to make a payment on or pay off a second loan.
Lenders are encouraged to use Freddie Mac’s automated valuation model, or AVM, to estimate the property’s current market value. Borrowers should ask whether a new appraisal will be required.
The borrower may be able to finance transaction costs of up to $2,500.
Borrowers whose monthly payment increases 20 percent or more must provide income and employment documentation and have an acceptable credit score and debt-to-income ratio to demonstrate they can afford the new higher payment.
If your loan does not meet these qualifications and you can not qualify for a typical refinance program, You may want to consider modifying your home loan with a loan modification Ca mortgage program. This will allow you to lower your monthly mortgage payments, lower your current interest rate on your mortgage, or possibly reduce the principal balance of your home loan mortgage.
More information can be obtained at the Freddie Mae web site or at the Home affordable modification webs site.
