Tag: HELOC

Fannie Mae’s Top Trending Questions – Dated June 22, 2020

Written by: Lloyd Rutherford, Staff Writer If there is a trending question with the agencies, then this means that multiple people are asking it.  The trending FAQs is an excellent way to quickly stay up to date and learn new things. Rule Synopsis: Fannie Mae updated their top trending questions. There are 24 questions and […]

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If a HELOC Is the Only Mortgage, Is the Refinance a Rate/term or Cash-Out?

Question: My client’s first mortgage is a HELOC.  They want to refinance in order pay off the HELOC and close that line of credit. Is this a Cash-Out or a Rate/Term Refinance?  MC Chart – Refinance Loans – All Agency Guidance Answer: Fannie allows you to treat as rate and term without regard to identifying […]

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Calculating a monthly payment on a variable HELOC monthly payment amount.

Question: My client has a HELOC line of credit which requires interest only payments each month.  As the line of credit loan balance shrinks, so does the required monthly payment.  How do I calculate this payment for consideration in the DTI? Answer: It is a vague guideline in the selling guide for Fannie Mae, and […]

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Calculating a payment on a HELOC loan – Draw Amt. vs. Line Amount

Question: My client has a HELOC which will remain open at closing. When calculating the payment on this line of credit for DTI purposes, should the payment be based on the full line amount or just the draw amount? Answer: Freddie Mac guidelines do not specifically address this situation, so we reached out to Freddie […]

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