Total Loans of 125% of Appraised Value? Hope Not…

I just received this e-mail from a local lender (and no, I’ve never worked with this person just to be exceedingly clear).  I’m hoping it’s a joke…

Just a quick note to let you know that Fannie Mae’s Refi Plus program allows for a total loan-to-value of up to 125% of the appraised value.

With minimal adjustments this is a great option if you have little or no equity and your current rate is around 6%, or if you have an adjustable rate wanting to convert it to a 30-year fixed.

3/1 ARM —————3.375% (3.35% APR)

5/1 ARM ————– 3.375% (3.48% APR)

7/1 ARM ————–3.50% (3.65% APR)

30-Year Fixed ——- 4.625% (4.89% APR)

15-Year Fixed ——— 4.125% (4.32% APR)

*Some restrictions apply. Call me for details

Thoughts?

I’m speechless for once…

One Reply to “Total Loans of 125% of Appraised Value? Hope Not…”

  1. I don’t see how this can possibly be real. My guess is it’s a “teaser” to get you to call (note the mention that “some restrictions apply, call for details”). In my market there isn’t even 100% financing available anymore, let alone the ability to collect cash at the closing table!

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