Are you looking to refinance your mortgage but have a high loan-to-value (LTV) ratio? If so, you may be eligible for special programs that can help you get the refinancing you need. Fannie Mae and Freddie Mac both offer refinancing options for borrowers with high LTVs. Fannie Mae's High LTV Refinancing Option is designed for borrowers who have a current Fannie Mae mortgage and are up to date on their payments, but have an LTV that exceeds the maximum allowed for standard refinancing with limited cash out. This program allows borrowers to refinance their mortgages with a lower interest rate and monthly payment.
The Freddie Mac Enhanced Refinance Program (FMERR) is another option for borrowers who have little or no capital. This program helps homeowners refinance their mortgages with a lower interest rate and monthly payment. When deciding if you qualify for a mortgage refinance, the loan-to-value ratio (LTV) is an important indicator that lenders use to determine your eligibility. While sufficient real estate capital and an LTV of less than 90% may mean that you qualify to refinance your mortgage with Discover Home Loans, you'll also need to verify that your income and credit rating support your ability to pay the refinanced mortgage.