Freddie Mac-owned Streamlined Refinance Mortgages and Relief Refinance

Federal Home Loan Mortgage Corporation or Freddie Mac, a government sponsored enterprise that was created by the U.S. Congress in 1970 created a great impact in the mortgaging industry.  One of its  products, Freddie Mac-owned Streamlined Refinance Mortgages made major changes in the way lending used to be handled.  The program decreased the interest rates as well as the first-lien amortization terms of qualified mortgages, and it likewise substituted ARMs with fixed-rate terms.

Freddie Mac-owned Streamlined Refinance Mortgages are used to pay off already existing mortgages while cancelling promissory notes.  The program refinances those that are making timely payments for at least a period of 12 months.

However, in January 18 of 2011, Freddie Mac announced that there will no longer be Freddie Mac-owned Streamlined Refinance Mortgages starting May 1^st of the same year.  The enterprise instead offered other alternatives that have the same benefits. The current Relief Refinance option, which is a program created in support of -Home Affordable Refinance Program (HARP) introduced by the government in February 2009.

Homeowners who have Freddie Mac-owned Streamlined Refinance Mortgages can apply for the Relief Refinance without having to submit proofs of income or records of employment. These programs are created for homeowners with low incomes, and needs to refinance mortgages to avail of lower interest rates.

While not exactly like Freddie Mac-owned Streamlined Refinance Mortgages the Relief Refinance allows homeowners to refinance as much as 125% of the value of their homes.   Those homeowners under the Federal Housing  Administration and the Department of Veterans Affairs may qualify for the program without having their property appraised.

Was this article helpful?
(1 votes, average: 1.00 out of 5)
 Loading ...