Anyone considering refinancing their mortgage under the Making Home Affordable plan had to be scared to death after looking at Fannie Mae’s new risk-based pricing adjustments. The Loan Level pricing Adjustment matriax, aka the Chart of Death, added prohibitive surcharges to refinances for nearly anyone without perfect property and perfect credit. But as of July 1, 2009, refinancing through the making Home Affordable program will be a lot less scary and a lot less expensive.
Per Fannie Mae’s Announcement 09-15, “Additionally, Fannie Mae is implementing a maximum cap of 2.00 percent on the total LLPAs and Adverse Market Delivery Charge assessed on Refi Plus and DU Refi Plus mortgage loans. This cap will reduce the cost of refinancing for some borrowers, which should help more borrowers take advantage of the refinancing benefits provided by Fannie Mae’s Home Affordable Refinance options.”
This should put some teeth in the program and make it a lot more useful for those who qualify. To see if your loan is owned by Fannie Mae, click here for Fannie Mae’s Loan Lookup Tool.
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Thanks for sharing this info post.