125% LTV Refinance Program Available


The Making Home Affordable Program created a program allowing borrowers to refinance even when the value of their home has decreased in value.  The allowable loan-to-value ratio for the program is 125% LTV, but up until now, most lenders were only offering the product up to 105% loan-to-value. 

Good news!! (drum roll) . . . . We can offer this program up to the full allowable loan-to-value of 125%. 

So how do you find out if YOU might qualify?

Question # 1 — Do you pay Private Mortgage Insurance (PMI)?

If you pay PMI on your current mortgage, while the program “allows” for your mortgage insurance company to adjust your insurance to accommodate for the new program (and the 125% LTV), in reality, mortgage insurers (or PMI companies) are not cooperating with the program.  So, if you pay PMI, unfortunately, I can’t help you.

If you do NOT pay Private Mortgage Insurance (PMI) . . .

Question # 2 — Do you have a 2nd mortgage?

If you have a 2nd mortgage, you can qualify for the program, but you can NOT pay off the 2nd mortgage as part of the new refinance.  The only option would be to have the 2nd mortgage subordinate to the new mortgage.  And, if you are already in a negative equity situation (and needing the 125% LTV guide of the program), there is a good chance that the 2nd mortgage company will not approve your subordination request.  For more information on 2nd mortgage subordinations and why 2nd mortgages can be a refinance road-block, read my post here.

If you do NOT pay PMI and you do NOT have a 2nd mortgage . . .

Question # 3 — If your loan currently owned by Fannie Mae or Freddie Mac?

To check to see if your loan is owned by Fannie Mae, you can use their loan lookup tool online.  NOTE:  when you hit “get results” the top of the screen will appear as if the form has not been submitted; you need to scroll down to see the results of the search.

To check to see if your loan is owned by Freddie Mac, you can use their loan lookup tool online.

If you do NOT pay PMI, and you do NOT have a 2nd mortgage, and if your loan IS owned by either Fannie Mae or Freddie Mac . . .

You are eligible and I can help.

Call me and let’s talk through the details, options, your qualifications, etc.  Hope to hear from you soon!  Soon, as in, before mortgage rates go up April 1st (my professional “guess” is that interest rates will be at 5.625% on April 1st, 2010 . . . I know that will be April fool’s Day, but 5.625% and rising interest rates is nothing to joke about).

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11 Responses to “125% LTV Refinance Program Available”

  1. Matt Says:

    “in reality, mortgage insurers (or PMI companies) are not cooperating with the program.”

    The following PMI company’s website contradicts this statement:


    Why would they explicitly advertise this on their website if they are not complying with the program?

    The reason I ask is because I have been trying to get a refi on my loan for almost a year now and I have been given this excuse.

  2. jpinkerton Says:

    Matt — Thanks for the link. So, this company is allowing borrowers to refinance under the program, but under a few (very specific) circumstances . . .

    — that PMI (that is the name of the PMI company, confusing, I know), that PMI is the current mortgage insurance insurer

    — that the originating lender must be the current servicer of the existing mortgage (if your loan has been transferred or sold, you would not be eligible, according to this document)

    — a few other conditions (see link here: http://www.pmi-us.com/media/pdf/products_programs/pmi_to_pmi_rtm/Same_Servicer.pdf)

    I read an article this morning that cited a VERY FEW number of people actually being able to take advantage of the program either due to 2nd mortgages or PMI . . . I’ve been searching for the link and can’t seem to track it down. Is your year in process been with your current loan servicer??

  3. cory Says:

    Woult LPMI disqualify me for your program. I can find people willing to take this on where the PMI was built into the interest rate, but no one to take on 125% LTV. We have one mortgage, not deliquient, Fannie Mae, and are looking for a refinance of our 6.375 rate.

  4. tg Says:

    is there ANYTHING that can be done for those of us who’s loans are not owned by freddie or fannie? I am pulling my hair out about what to do with this 1 bedroom condo i bought at the worst possible time… I was single back then so this was enough, but now I have a baby, wife, and dog (they didn’t come in that order 🙂 and it is just WAY too small… I would love to be able to sell it, but being upsidedown by so much, it seems that’s just not possible. AT the time I didn’t have great credit either, so i’m paying WAY more than I should be (originally cost 235k, and i’m paying 1800 a month). Even if I was able to rent it out, I would probably only get 8-900$ a month, leaving 1000$ a month taken away from what I can afford in mortgage or rent payments on a larger place for me and my family….
    I have a much better job with almost double the income I had back then, and a MUCH better credit score…if it wasn’t for this condo I’d have no problem getting a much larger place for us, but the situation with this condo is just killing me. ANd if it wasn’t for that freddie/fannie stipulation I would have refinanced long ago. Is there ANY other method that will let you refinance with 125% ltv (well…any other /legitimate/ method.. not some predatory shark looking to stick me with an astronomical interest rate or some other shady fine print).


  5. erica yoder Says:

    interested in your 125% refinance option offered on the site. I don’t have mortgage insurance, don’t have a 2nd anymore, and my loan is owned by fannie mae. Current 1st balance is 104k worth about 85-90k. current rate at 6.5 due to go adjustable in may of 2012. husband and I have excellent credit and are up to date on payments, just need to know estimated closing costs that you charge and est. interest rate.
    let me know and I look forward to hearing from you,

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  7. Joel Says:

    There is (as of November 15, 2011) no LTV limit. That’s right, no LTV limit, it used to be 125%. If you have an ARM then it is 105%. I realize these posts are a little old but that’s an update.

    • jp Says:

      Hey Joel,

      Today is 125% LTV. Unlimited LTVs are part of the revamped HARP, but that part of the program is not available yet. It won’t be available until Fannie and Freddie update automated underwriting. That is estimated to be ready to go in the Spring. So until then, 125% is the best we’ve got. Unlimited is coming, just not yet.

      Thanks for reading!

    • jp Says:

      For updated posts about HARP, see some of the more recent additions to The Mortgage Blog.

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