GMAC Mortgage is the current incarnation of GMAC-RFC which was one of the nation’s largest mortgage companies. Originally a part of General Motors — GMAC stands for General Motors Acceptance Corporation — GMAC is now owned by Ally Financial. Ally is what is left of GMAC and is owned by a consortium of General Motors, the United States Treasury and other investors. In addition to providing banking and car loan services, they also provide a broad range of mortgage and refinancing options for residential customers through GMAC Mortgage their the GMAC Mortgage subsidiary.
Traditional GMAC Mortgage and Refinancing Rates
Investors looking or a traditional mortgage loan can turn to GMAC for excellent rates and unique terms. While they prominently feature their 30- and 15-year fixed rate loan products, they actually allow borrowers to create their own loan with any term between 10 years and 30 years. This lets you take out a new mortgage with the exact term that suits your needs. This is especially value with a refinancing since you can choose to take out a slightly shorter term loan, like a 25 year mortgage, to still be on track to pay your home off in a total of 30 years.
Borrowers who want the low initial rate of an adjustable mortgage can also turn to GMAC. Their adjustable rate mortgages can be fixed for three, five or seven years, with the additional opportunity to fix a refinancing loan for as long as 10 years. Furthermore, they cap how much the rate on an ARM can go up in a given year or over the entire life of the loan. This protects you from experiencing wild swings in your payment if interest rates go up.
FHA/VA Mortgage and Refinancing Rates
Borrowers who need a little bit of help to get a loan can work with GMAC to use the FHA and VA programs for their mortgage or refinance loan. While both are attractive and offer low down payments and relaxed qualification requirements, the VA program offers additional benefits for the brave men and women that are either active-duty service members or veterans.
FHA mortgages allow for a down payment of as little as 3.5 percent and carry flexible approval requirements. They offer low fixed interest rates and carry no prepayment penalties. If you are looking to do a cash out refinance, you can take out as much as 85 percent of your home’s value through GMAC’s FHA cash out refi program. The only drawback to an FHA loan is that you will need to pay a small upfront cost and an additional small monthly cost for mortgage insurance.
VA loans, on the other hand, are even more generous. They carry no mortgage insurance requirements and allow you to buy a home with absolutely no down payment. GMAC can even roll your closing costs into your loan. If you are looking for a cash-out refinance, you can take out up to 90 percent of your home’s value. Their qualification requirements are even more relaxed than a FHA loan’s, as well. While a new VA loan for a home purchase will require you to get a “Certificate of Eligibility” proving that you have the necessary current or past military service, VA refinances typically do not require you to take this additional step.
GMAC Mortgage’s Jumbo Loan program helps people who need a mortgage over $417,000, or $625,000 in the states of Hawaii and Alaska. They offer both mortgage loans and refinance loans with both fixed and adjustable rates. While their fixed jumbo rate program does not offer the flexible “pick your term” capability of their conforming mortgage products, they do allow borrowers to choose fixed rate terms of 10, 15, 20, 25 or 30 years. This makes it easier to tailor your loan to your long term financial goals.
HARP Refinance Rates
If you are one of the millions of underwater homeowners with a mortgage owned by Fannie Mae or Freddie Mac, GMAC can help you with a refinance through the Home Affordable Refinance Program (HARP). GMAC’s HARP refinance rates are extremely competitive and offer 30- or 15-year fixed terms as well as an adjustable rate option. They help you get rid of any unfavorable mortgage taken out before January 1 of 2009 and let you take advantage of today’s low interest rates. HARP loans through GMAC also require little or no equity and have relaxed underwriting and credit requirements.
Ultimately, all of GMAC Mortgage’s programs are outlined on their website at www.gmacmortgage.com. The site also provides you with ways to contact them to discuss your new mortgage or refinancing loan and to get a sense of what their exact rates will be for you.