These loans are NOT for borrowers looking to combine a first and second mortgage or borrow equity to consolidate other debts. If you are looking to combine your loans or pull equity out please click here
Here are some of the key bullet points that you should be aware of:
- If when you took your original mortgage you had 20% equity and No PMI (Private Mortgage Insurance), you are able to refinance your new mortgage for up to 105% of what your home is currently worth with no need for PMI. However, most lenders may require that you now escrow for taxes and insurance if you don't currently.
- If you had less than 20% equity you likely had PMI of some type. Keep in mind that many loans that were sold as "NO PMI" in exchange for a slightly higher rate did have what was known as Lender Paid Mortgage Insurance. You are also eligible to refinance your mortgage without the need for a new PMI policy (the existing policy is carried over to the new loan, with a slight modification of terms in some cases) provided that the new mortgage balance does not exceed 105% of the home's current value.
- If you took a first and second mortgage to purchase your home and avoid PMI insurance you are not able to combine the loans into one new loan. The second mortgage must stay how it is currently. Depending on who holds your second mortgage you may have difficulty in refinancing as the second mortgage holder must agree to remain in a second position behind your new mortgage. You are eligible to refinance your mortgage with a second mortgage in place provided your new mortgage balance does not exceed 105% of the homes value. There is no limit on the total of both loans combined
- If you took out a second mortgage after you purchased your home, you are not able to combine both loans into one new loan. The current second mortgage holder must agree to remain in a second position or you would not be able to refinance. Your first mortgage can be for up to 105% of the homes value. There is no limit on the total of both loans combined.
- As a reminder "Home Equity Loans" and "Home Equity Lines of Credit" are second mortgages as they are secured by a second lien against your home.
The terms and options available to you will depend on who the owner of your mortgage is. Because most mortgages are owned by Fannie Mae and Freddie Mac, the owner of your mortgage can make a difference.
- If you are currently making your mortgage payments to First Place/Franklin Bank we are able to assist you with your options as we deal directly with Fannie Mae and Freddie Mac on all loans that we service. This gives us a tremendous amount of flexibility in assisting you.
- If you are NOT currently making your payment to First Place/Franklin Bank and you need the flexibility provided by this new program, we are only able to assist you if your loan was sold to Fannie Mae and your original mortgage balance was for 80% or less of the sales price/appraised value when you took your mortgage.
- If your loan was sold to Freddie Mac and you desire to take advantage of this new program and it's flexibility you must go back to your current loan servicer. Unless First Place/Franklin Bank is your current loan servicer we would not be able to assist you.
- If you would like to refinance and do not need the flexibility provided by this program we are able to assist you irregardless of who your current mortgage holder is and look forward to the opportunity to serve you.
To check and see if Fannie Mae or Freddie Mac owns your mortgage please use the following two links. When entering an address, please try multiple time. If your address is 123 Main Street. You will want to input:
123 Main Street
123 Main ST
123 Main
Believe it or not, a simple ST at the end of the address can make a difference in determining whether or not a loan is held by Fannie or Freddie.
Fannie Mae Loan Look Up - Freddie Mac Loan Look Up
Additional information about the Presidents plan can also be found by visiting the Making Home Affordable website.
If you are not eligible for one of these refinance options and you are in danger of losing your home because of a loss of income and/or a decrease in income, options may be available to assist you in keeping your home. Please contact your current mortgage servicer as soon as possible. The sooner you contact your lender the sooner they can assist you in trying to keep your home.
My team and I are available to assist you. Because of the large influx of applications recently. Please be patient as we do our best to reach every client who has made an inquiry about refinancing.
Please don't hesitate to contact us with any questions. Please make sure to include both a daytime and evening telephone number for us to reach you back at.
Here are some other blog post on refinancing you may find helpful:
Refinancing Questions and Answers (Audio Broadcast)
Refinancing Questions and Answers
What Are Mortgage Rates
Refinancing to Combine Mortgages or Take Cash Out
