Massachusetts Agencies

Residential Refinance Rate

Articles from The Massachusetts Focus

Newsletter of Stewart Title Guaranty Company, Massachusetts Offices
Fall 2008, Volume 7, Number 4

Residential Refinance Rate
by Jennifer Kohler, Office Manager

A discounted premium rate applies on one- to four-family residential refinance transactions if the property is currently encumbered by a mortgage held by an institutional lender and provided such mortgage was recorded within the last seven years. The discounted premium is equal to 60% of the regular premium (a 40% discount off the regular rate) and applies up to the face amount of the existing institutional first mortgage. If the new mortgage amount exceeds the prior mortgage amount, the premium for that excess amount of insurance shall be calculated at the regular premium rate at the applicable bracket above the discounted amount. ot all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose. Some lenders, as a rule, never accept them. You may need to make a half dozen phone calls before you find the person responsible for handling short sales. You do not want to talk to the “real estate short sale” or “workout” department; you want the supervisor’s name, the name of the individual capable of making a decision. Some lenders will have formal short sale packets with documents unique to the lender’s requirements. If the lender accepts short sales, ask if they have a packet.