Home affordable refinance program to expand to 125% of home value.
If you are looking to take advantage of low interest rates but can’t refinance because the value of your home has gone down, new limits on the home affordable program may help.
You can get the full program details here. Home Affordable Program Expansion
This refinance program originally was set at 105% of the home value. In other words if you have a home that is worth $200,000 you could refinance up to $210,000 with no private mortgage insurance. With the new program you will be able refinance up to $250,000. In addition there are incentives for refinancing with a shorter loan term.
The loan you are trying to refinance must be a Fannie Mae or Feddie Mac loan to be eligible.
Like many of these “government” programs, details are still emerging. Once we know more we will pass it on.
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