Refi Plus™ is a home refinancing option for homeowners with an existing mortgage through Fannie Mae. This option is designed for homeowners who have been making their mortgage payments on time but decreasing their real estate investment due to depreciating home values. Refi Plus™ allows these homeowners to refinance without Private Mortgage Insurance (PMI), as long as the homeowner does not carry PMI on their current loan.
With falling home values many homeowners are finding that they do not have the 20% home equity that they once had, which also means their loan-to-value (LTV) ratio is more than 80%. In ordinary home refinance programs, these two factors would require the person refinancing to pay for PMI. With Refi Plus™, the homeowner can avoid PMI because the lender takes the homeowners' payment history into consideration. If you have made your payments on time, you may be able to save money with a home mortgage refinance through Refi Plus™.