Fannie Mae DU Refi Plus

The new Fannie Mae DU Refi Plus program began last week and we are still trying to work out some of the bugs. The program, which is supossed to help overleveraged homeowners, is still calling for appraisals on many deals. Part of the program is the benefit of being able to get an appraisal waiver so you can refinance to take advantage of today's historically low rates. While you still can take advantge of the low rates, odds are you will still need to get an appraisal. The nice part of the program is that if you did put money down on your current mortgage you still may be able to take advantage. For example, if you bought your home in 2005 for $300k and it is now appraising for a number around $250k, and you put 20% down, so your loan amount is $240k minus any principal you may have paid down in the last 4 years. You can still refinance and take advantage of rates that start in the 4's on a 30 year fixed, even though you have lost almost all of your equity you still will not have to pay mortgage insurance on the new loan. You will be able to payoff your current loan, and add in any closing costs to make up the new loan with the new rate. There are many more details to this program, but it can help many people. Feel free to contact me with any questions and we can see if now is the time for you to take advantage of your very own stimulus plan.