Mortgage Daily Logo
mortgage news from industry experts

Mortgage Insurers Expand Refi Programs

Mortgage Insurers Expand Refi ProgramsPMI, Radian announce updates

June 25, 2009

By MortgageDaily.com staff

Two mortgage insurers have expanded their guidelines on refinance transactions.

The refinance-to-modification program at PMI Mortgage Insurance Co. has been expanded from just Home Affordable Refinance Program loans owned or guaranteed by Fannie Mae or Freddie Mac to all loans, a news release today said.

The program enables borrowers with existing mortgage insurance policies to refinance by modifying the existing policy, according to the Walnut Creek, Calif.-based company. The rate and premium are unchanged by the transaction, while no modification fees will be charged.

Borrowers who otherwise wouldn’t qualify for mortgage insurance because of plummeting home values are eligible for refinances under PMI’s program. Qualified loans must be current and reduce either the payment amount, interest rate or principal balance. Other qualifying factors include an extension of the teaser rate period, an extension of the amortization or a refinance out of an exotic loan.

In a June 15, announcement, PMI said it expanded home affordable refinance-to-modification programs from just loans where the existing servicer was handling the refinance to transactions where a new lender was funding the refinance.

In its own announcement today, Radian Guaranty Inc. said it launched a program that helps qualify borrowers for traditional refinances on loans not currently serviced by a new lender. The move was made in conjunction with the Homeowner Affordability and Stability Plan launched earlier this. The program enables borrowers with ineligible loan-to-values to refinance.

“The new program enables Radian to transfer a homeowner’s existing mortgage insurance policy to any new loan that meets the policy’s more flexible eligibility criteria, making it easier for homeowners to refinance their existing mortgage into a more predictable loan type and/or take advantage of today’s lower interest rates to lower their monthly payment,” Radian said.


next story

back to current headlines

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION