Today’s low mortgage rates make home refinancing sound very appealing. Unfortunately, for millions of homeowners across the U.S., the cost to refinance is unattainable –especially with closing costs and fees. Thanks to a new initiative from the Federal Housing Finance Agency (FHFA), home refinancing is within reach for lower income households who want a lower interest rate and experience lower monthly payments.
Known as RefiNow™ from Fannie Mae, this new refinance program provides low-income borrowers with financing options that help build equity and increase wealth. The goal of the program is to promote a stronger, more stable housing finance system by expanding eligibility to borrowers who may not have had the funds available to refinance previously. RefiNow allows borrowers to take advantage of the current low interest rates of today’s market.
Borrowers can save the money they once used for high mortgage payments and put it towards their future. Finish half-started home improvement projects by saving on monthly expenses that would have gone towards the mortgage. Build that new garage you’ve always wanted and increase the value of your home. Additionally, invest and grow wealth in other ways, all with the help of RefiNow saving them some money.
What are the Benefits of RefiNow?
Along with saving money and growing wealth, RefiNow reduces interest rates by at least 50- basis points and saves borrowers $50 on their monthly payments, at a minimum. This includes principal, interest and insurance. If an appraisal is required, borrowers can receive a maximum credit of $500 from the lender. RefiNow can help borrowers save money monthly.
In addition, low-income borrowers with loans at or below $300,000 will get the 50-basis point up-front adverse market refinancing fee waived. This fee alone can be $1,000 or more, depending on the mortgage amount. By taking advantage of today’s low interest rates, waiving large fees, and providing low-income borrowers with a way to save money after purchasing a home, RefiNow promotes a stronger, safer housing finance system.
Who Qualifies for RefiNow?
RefiNow offers borrowers a new refinance option that makes it easier for homeowners to secure a lower rate and save on monthly mortgage payments. So, who can take advantage of these savings?
To qualify, household earnings must be 80 percent or less of your area’s median income. There must be no missed payments in the last six months, and no more than one missed payment in the past year. Borrowers seeking to refinance their mortgage through RefiNow must also have a minimum credit score of 620.
In addition to the qualifications above, the mortgage being refinanced must be a Fannie Mae or Freddie Mac mortgage on an owner-occupied, 1-unit single family property. This means non-multiple residential units, used by one family as their primary or permanent home. It does not include rental properties such as duplexes, condominiums, etc.
Refinance Your Home Today!
Don’t settle for high interest rates and higher payments. With RefiNow, you can save money for your home. Starting today, Union Home Mortgage will be offering this program to eligible borrowers! If you are looking to refinance, contact one of our UHM Loan Officers today to see if you qualify!