Fannie Mae's DU Refi Plus Program

Current 30 year fixed mortgage interest rates are seriously trying to challenge their all time lows while Current Adjustable Rate mortgage interest rates may be at their all time lows especially the 5/1 Adjustable rate mortgages possibly available in the 2% range.

Fannie Mae's DU Refi Plus

In case you haven't heard Fannie Mae's conforming mortgage program has a product called DU Refi Plus: Fannie Mae 's DU Refi Plus conforming mortgage loans program will allow you to refinance your current Fannie Mae conforming mortgage up to a Loan to Value (LTV) of 125%

Why would I need a DU Refi Plus?

This particular conforming mortgage program released by Fannie Mae is especially helpful in assisting borrowers who have a higher interest rate yet were unable to refinance their current mortgage due to the value of their property declining.

DU Refi Plus real life example

Let's say you purchased your home for $300,000 and you put 20% down payment for a loan amount of $240,000. You tried to refinance except now your home is unfortunately only worth $240,000 and your principle balance is 238,000, then you add in some closing costs and your new loan amount would have to be in the vicinity of 242,000. Fannie Mae's DU Refi Plus program will still allow you to refinance while under normal situations and normal guidelines without this program, it would be impossible to refinance unless you came to the table with money to pay down the principle balance on your mortgage to acceptable levels.

Fannie Mae's DU Refi Plus conforming mortgage program will allow for your current mortgage to be refinanced with a lender who is not the current servicer of your present mortgage. (Contingent on individual lenders' guidelines)

Who is the DU Refi Plus mortgage program for?

Fannie Mae's DU Refi Plus conforming mortgage program is better suited for those borrowers who do not currently have mortgage insurance. Although Fannie Mae does allow for current loans with mortgage insurance to be eligible for this program, it is challenging to find a lender who will allow it. You may be better off to check with your current servicer first if you presently have mortgage insurance on your current mortgage.

Fannie Mae's DU Refi Plus conforming mortgage program does not limit borrowers based on credit score, debt to income levels, property type or occupancy types as long as the new loan will benefit the borrower and put them into a better situation. All loan applications for this program will have to be run through and approved by Fannie Mae's Automated Underwriting System. Individual lenders may have their own guidelines and requirements even if your loan application is approved by Fannie Mae's AUS engine.

DU Refi Plus loan amounts

Fannies Mae's DU Refi Plus mortgage program also includes loan amounts greater than 417k (for Single Family Residences) which are allowed in both their permanent High Balance loan program (625,500 max for a SFR) and their Temporary High Balance Program (729,750 max for a SFR) based on the allowable limits per individual areas.

Freddie Mac's Conforming Mortgage Loan

Freddie Mac's Relief Refinance program also offers a conforming mortgage loan program very similar to Fannie Mae's conforming mortgage loan program DU Refi Plus. Freddie Mac's program also allows a refinance of a current Freddie Mac loan up to 125% LTV. Effective October 1, 2009 Freddie Mac released their "Open Access" program which will allow any lender to refinance another servicer's mortgage as long as the new and current mortgage are both Freddie Mac loans. Up until October 1st, Freddie Mac only allowed the current mortgage servicer to refinance the mortgage.

In spite of the current state of the economy, there are a lot of incredible opportunities to finance a purchase of a new home or refinance your current home at what may be considered interest rates at ignorant levels: Definition of ignorant from Webster's Dictionary: "lacking knowledge or comprehension of a the thing specified' While it may be difficult to comprehend current mortgage interest rates at these levels that doesn't mean they do not exist or not available.

The Federal Government's First Time Home Buyer Tax credit of up to 8 thousand dollars expires in 1 month and 24 days.

For more information on your mortgage options available to you, visit http://www.TotalMortgage.com