Question by Earl S: Refinancing with Fannie Mae or Freddie Mac?
In general, how difficult is it to refinance a mortgage with Fannie Mae or Freddie Mac. Heard recently that their caps have been raised 2% and that future cap increases will allow more borrowers to refinance out of predatory loans. What steps need to be taken in order to initiate such a refinance other than simply contacting a lending partner of those two agencies?
Best answer:
Answer by Carolinahomerates.com
there no lending partners but approved lenders.
Almost every lender in the US is approved with FNMA/FHLMC.
You might be referring to FHA mortgages, which only a few are approved lenders. FHA Secure Programs are helping ppl out of the high ARM rates
The regular FHA program can still help ppl with high rates. FHA rates are like 6.875% and lower right now.
What do you think? Answer below!
You go to any institution that is authorized to originate conforming conventional, FHA or VA loans. Virtually all mortgage banks, mortgage brokers, and depository institutions are authorized.
Depending on how you want to do the loan, meaning full docs or stated income.
I would do full docs because you get a lower rate for taking the time to send them all of your information.
After you contact them, they will run your credit, check your debt/ burden ratio, loan to value ratio, and more.
After that they will let you know what rate you qualify for and what your new montly payments will be.
Give them a call to see if they can help you. Aslong as nothing comes out of your pocket until after you get a solid rate and payment quote from them, then I guess there is no harm.