Home Affordable Refinance with no PMI

If you currently have a Fannie Mae loan and you are not currently paying private mortgage insurance (PMI), the DU Refi Plus program will allow you to refinance into a new lower rate WITHOUT adding PMI regardless of the ratio of your loan-to-value (LTV).

For example, let's say that you purchased or refinanced a property in 2008 and borrowed 80% of the value of the home. Now that property value has fallen to the point that you now owe 90% of the value of the home. Prior to the release of the DU Refi Plus program, you would have to pay PMI on a new refinance loan since you are borrowing more than 80% of the current value of the home. With the DU Refi Plus program you can refinance into today's lower rates WITHOUT adding PMI to the loan!

This initiative is part of President Obama's stimulus package designed to help homeowners take advantage of today's lower rates without being penalized by being forced to pay PMI on a new refinance.

The maximum you can owe is 105% of the value of the home. So, there is a limit as to how much you can owe relative to the current market value of the home.

"Am I eligible to refinance my mortgage," should be the next question. Determine what current guidelines are for qualifying to refinance. Other questions to ask: "Do I have enough equity in my property? If not, can I qualify for any of the government programs currently being offered? Does Fannie Mae and/or Freddie Mac or another investor own my mortgage? Am I currently paying private mortgage insurance? Do I need to work directly with the current servicer of my mortgage to modify my mortgage if I owe more than my house is currently worth? What is my house really worth? Do I really need to get an appraisal if I'm eligible for the HARP program?" These are all questions that will help you determine what your options are.

Should I Refinance?

When do you know that refinancing might be in your best interest? Since your home and your mortgage are your largest investments, it is very important to stay on top of appreciation trends, market changes, and other important issues, because unltimately your home can become the most startegic investment that you own. Let's face it the home is the biggest investment most American's make.