Freddie loan refinance... no pmi? a joke?

Simple answer is if the lender said no PMI then they should honor that unless they had to change the program for whatever reason, but they should have made you well aware of that change before moving forward. I agree with the other lenders that it sounds like the lender was trying to put you into Freddie Mac's LP relief program that allows exisiting Freddie Mac loans to go up to 106% LTV with No PMI and the rates are a bit higher then standard market rates. However if you had no PMI on the loan but had Lender paid MI then it would kick you out of the program and you would have to go with a PMI program either FHA or Conventional. By chance did you serve in the military? If you did you may be eligible for a VA loan which does not have PMI at all!

Your case is a prime example of why selecting the correct Loan Officer is so important. Without benefit of a full file, everyone here is just quessing. Others are commenting that you should be able to access Freddie Mac's relief program, where if your previous loan did not have PMI, your new loan would not have to have PMI. This is true... but that doesn't appear what they are offering, so something else must be going on. I suspect that while you currently believe you do not pay PMI, you probably DO HAVE PMI built into the loan (not a seperate line item). There are numerous programs like "lender paid PMI", or "Single premium" that may be in play here. If that is the case, the Loan officer is probably looking at a standard loan, and it would appear the loan officer incorrectly assumed the value of your home would be higher, and that your new loan would be under 80% loan-to-value, therefore not needing PMI. Now that the appraisal has been received, you are ABOVE 80% and need to deal with PMI. The loan officer should have explained your transaction was subject to the appraisal. If your loan DOES have PMI, that opens a whole new can of worms full of different options.

The answer is "It Depends". If you are refinancing on a standard conventional loan then yes you would have PMI.If you are refinancing on the "Freddie Relief" program then you would not have PMI. Ask your lender/broker if you are refinancing on the "Freddie Relief" program.

hi there: Freddie's Open Access states the below:Mortgage Insurance For an LTV ratio greater than 80 percent:If the mortgage being refinanced has mortgage insurance coverage, then the same mortgage insurance coverage percentage must be maintained for the Relief Refinance Mortgage - Open Access. If the mortgage being refinanced does not have mortgage insurance, then no mortgage insurance coverage is required for the Relief Refinance Mortgage - Open Access. Freddie offers the Open Access which can be originated by a broker or 3rd party...Then Freddie also offers the Same servicer meaning that you can actually contact your servicer whoever you pay the mtg every month to and they can also perform the refinance for you. If you have any questions on both of the HARP program, give me a call I use to be a junior underwriter for Freddie Mac. (Mike 703 505 5300). I can show you the list of lenders that can go to 125% fixed rate also.