When are ARM-to-ARM refinances allowed under the Relief Refinance Mortgage offering?
A borrower can refinance from an ARM to a fully amortizing 5/1, 7/1 or 10/1 ARM as long as the borrower’s interest rate on the Relief Refinance Mortgage is lower than the interest rate on the existing mortgage and the LTV ratio of the Relief Refinance Mortgage does not exceed 105 percent. • Can I refinance a mortgage under the Relief Refinance Mortgage offering if the existing mortgage is a second home or investment property mortgage and the borrower now occupies the property as a primary residence? Yes. A Relief Refinance Mortgage – Same Servicer is eligible for sale as a primary residence mortgage if the mortgage being refinanced was underwritten and sold to Freddie Mac as a second home or investment property mortgage, and the property is now an owner-occupied primary residence. A Relief Refinance Mortgage – Open Access must accurately reflect the current occupancy status and be underwritten based on that status.
Related Questions
- Is a mortgage eligible for the Relief Refinance Mortgage offering if the borrowers previous application for a refinance was cancelled or denied because the LTV ratio was too high?
- Is a mortgage with mortgage pool insurance eligible for refinancing under the Relief Refinance Mortgage - Open Access offering?
- When are ARM-to-ARM refinances allowed under the Relief Refinance Mortgage offering?
