How is the loan to value (LTV) considered in the Making How Affordable Refinance Program?
The Making Home Affordable Refinance Program eligibility has expanded to include borrowers who are current with their mortgage, owned by Fannie Mae or Freddie Mac and have a LTV of up to 125 percent . Previously, borrowers with a LTV of 105 percent or less could qualify for refinancing under the Making Home Affordable program. For example, a borrower who owns a home appraised at $100,000 could have a mortgage of up to $125,000 and still qualify. Previously, that same borrower could only have owed up to $105,000 on this mortgage. The loan-to-value (LTV) ratio expresses the amount of a first mortgage as a percentage of the total appraised value of real estate.
