Mortgage Rate News

Fannie Mae is trying to help refinancing move through with a little more efficiency. One of the tools being used is called the “Desktop Underwriter.” Subprime Blogger has some good information on this new refinancing program:

The “Desktop Underwriter Refi Plus” program is going to expand the criteria for qualifying for a loan.  There will be a reduction of employee information as well as a lower FICO score will be required to qualify for the advertised low rate mortgage loans.  This is a strong effort by Fannie Mae to give more homeowners the opportunity to refinance and get a rate they desire.

One of the cornerstones of foreclosure prevention (followed by some measure of economic recovery) is refinancing. By speeding up the process, it could be helpful. Unfortunately, Subprime Blogger continues, it probably won’t help a lot of people who are having serious problems with qualifying:

Many of the homeowners who were ineligible before will remain ineligible due to the subprime crisis and lenders being strict with their lending practices.  For those that do qualify, it will make the process much quicker as there will not be as much documentation as before.

If you are in a good place to refinance, and are thinking about taking advantage of lower rates, this might be useful. Your waiting time will be reduced. Additionally, if you are right on the edge of qualifying, Desktop Underwriter might nudge things your way. It could also help you get a better interest rate.

In the end, the best thing you can do for your refinancing chances is to make sure that the following items are in order:

• Good loan to value ratio on your home.
• Decent credit score.
• Up to date mortgage loan payments.
• Don’t expect to cash out.

Refinancing can be done, and the rates are pretty low — especially if you refinance to a 15-year loan. If you play it right, you can get a shorter-term loan at a much better interest rate.

Related articles by Zemanta

• The Scoop on Obama’s Refinancing Initiative (kristalsellsdenver.com)
• Obama’s Homeowner Assistance Plan (azmortgageguru.com)
• To Refinance Or Not To Refinance? (cbsnews.com)