No Cash-out Refinance Mortgages
Consolidate higher-rate seconds into one, lower-rate loan
Being competitive in today's mortgage market means offering your customers smart, affordable and convenient mortgage options designed to fit their changing needs. Offer your borrowers a no cash-out refinance mortgage to reduce their interest rate and monthly payment and consolidate higher-rate seconds into one, lower-rate mortgage.
A no cash-out refinance mortgage can lower a borrower's monthly payment, and all related closing costs, financing costs and prepaids/escrows can be rolled into the new loan amount.
Plus, when you use Loan Prospector® automated underwriting technology to evaluate no cash-out refinance mortgages, you'll approve more borrowers and streamline your process with less documentation.
|Eligible Mortgage Products||
|Maximum LTV Ratios (without secondary financing)||
|Down Payment or Closing Costs||
* See our selling system availability matrix for a list of specific mortgages eligible for sale best efforts or mandatory, servicing released.
|Special Delivery Requirements||
|Single-Family Seller/Servicer Guide||
No cash-out refinance mortgages help you:
- Retain your current customer base and increase your origination volume with options to meet the needs of more borrowers.
- Improve efficiencies using Loan Prospector.
- Easily sell more mortgages to Freddie Mac.
Benefits for Your Borrowers
No cash-out refinance mortgages help your borrowers:
- Lower their interest rate and payment.
- Consolidate higher-rate seconds into one, lower-rate loan.
- Eliminate upfront costs by rolling in all related closing costs, financing costs and prepaid items into the new loan amount.
- Eliminate mortgage insurance when the new appraisal or inspection report supports a higher value to calculate the new LTV ratio.
For More Information
- Call your Freddie Mac representative
Visit The Learning Center for live and recorded web conferences, access to classroom-style workshops and self-study tools – all designed to help you stay competitive, serve more borrowers and make it easier to do business with us.
The information in this document is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or Master Commitment.