by Robert Hyder
The heavily anticipated release date of Fannie Mae’s DU Refi Plus is a mere 11 days away. As a result of the near historic-low current mortgage interest rates, America is already in the midst of a mini refi boom. Now add DU Refi Plus into the mix, and the mortgage application rate may reach never-before-seen highs. Unfortunately, there are millions of Americans painstakingly waiting for the calendar to turn to April 4 to take advantage of these low mortgage interest rates.
The reason these homeowners are forced to wait for the release of DU Refi Plus is because the equity in their homes has significantly decreased along with property values. The existing guidelines within the current Desktop Underwriter will not allow an LTV anywhere close to the maximum 105% DU Refi Plus has in store.
Maybe even more impressive than the maximum LTV of 105% presented in DU Refi Plus is updated guideline concerning private mortgage insurance. DU Refi Plus will waive the need for private mortgage insurance if the LTV goes above 80% as long as the existing mortgage does not require it. With the continuous decline in property values, DU Refi Plus will help millions of homeowners that wouldn’t otherwise qualify for a refinance mortgage loan.
Property eligibility under DU Refi Plus includes all property types, including:
• Co-ops
• Condos
• Manufactured Homes
• PUDs
Primary residences, as well as investment properties, are eligible for 1 to 4 units under DU Refi Plus. Second homes are eligible for 1-unit properties.
DU Refi Plus: 11 days and counting …
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Interest Rates » Anticipation for DU Refi Plus Growing | Mortgage Rates & Trends …
March 24, 2009 @ 12:57 pm
Great post!
Suzanne
March 31, 2009 @ 1:28 pm
Robert, is DURefiPlus only available to people whose mortgages belong to Fannie Mae already?
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robhyder Reply:
March 31st, 2009 at 2:46 pm
Suzanne, yes, the refinance must be for an existing Fannie Mae loan. However, the lender does not have to be the current servicer of the mortgage loan. As long as DU is available, you can refinance with any servicer of your choosing.
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Lisa
April 9, 2009 @ 8:50 am
This is extremely helpful for us. We’ve been in our home two years, initial mortgage at 7+%. In our first two years, we had to put a significant amount of unexpected work into the house, which drove up our debt. We’ve had to stop work on the house because debt is getting out of hand. A refi will give us extra cash per month to pay off the debt and get back to doing the work our house needs. And once that is done, the extra money can go toward retirement or paying extra on our mortgage. This is definitely a boost for us in the right direction and not just a bandage.
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