qUESTION ABOUT fANY MAE REFIANCE i think its BS (mortgage broker, refinance)

[01gtprocket]

I tried to reifance my home under the fannie mae.. Now they tell me that my house needs to be verffied or something .. The lady goes on the computer and says they say your house is around $133,000 and the local resltate guy says its worth $150,000.. Now Quicken told me that I have to have it apprraised at $157,000 to even get the fanny mae deal.. Then he said it was going to cost me $5 grand to refiance.. I thought the reifance was free through the goverment? I think thats a way they dont have to reifance everyone...


any advice? im 30yr fixed at 6%


steve

[suzie02]

Originally Posted by 01gtprocket

I tried to reifance my home under the fannie mae.. Now they tell me that my house needs to be verffied or something .. The lady goes on the computer and says they say your house is around $133,000 and the local resltate guy says its worth $150,000.. Now Quicken told me that I have to have it apprraised at $157,000 to even get the fanny mae deal.. Then he said it was going to cost me $5 grand to refiance.. I thought the reifance was free through the goverment? I think thats a way they dont have to reifance everyone...


any advice? im 30yr fixed at 6%


steve

Your house has to appraise at 105% LTV or less. If your house is worth 150k then your 1st mortgage can't be more than 157k to qualify. Yes you will have to pay closing costs. The purpose of the program is to allow people to refi without having to pay PMI. Nothing else. No freebies.

[DMenscha]

Talk to a LOCAL mortgage broker about your situation. Fannie Mae doesn't make the loan, they set guidelines for mortgage companies so that the loan could be sold in the secondary market.

[suzie02]

Originally Posted by DMenscha

Talk to a LOCAL mortgage broker about your situation. Fannie Mae doesn't make the loan, they set guidelines for mortgage companies so that the loan could be sold in the secondary market.

This is different. It is the new government program. Making Home Affordable - Home Affordable Refinance

The OP may not be eligible if point number 4 is not met
"Do you believe that the amount you owe on your first mortgage is about the same or less than the current value of your house?"

About the same is defined as 105% LTV.

To the OP. If you are close to the 105%, LTV it may be worth it to you to bring some money to the table to get into the program.

[DMenscha]

Fannie Mae still isn't making the loan, they are forbidden from doing so under their charter. They are offering to act as a go between borrowers and their lenders.

"We also make other investments that increase the supply of affordable housing. Under our charter, we may not lend money directly to consumers in the primary mortgage market." From page 1 of their last 10K annual report.