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Not eligible to save money by refinancing before? You may be able to now!

Did you know

What if you could save money on your current mortgage payment? Would you want to save extra funds for retirement? Maybe you want to take that trip to see family or friends that you haven’t seen in a while? Or maybe you want to get that new car that you’ve been dreaming of forever. No matter what your dreams and goals are, there are now options available to help low-income borrowers achieve them.

Thinking out of the box

Now that there are options available, turning your dreams into reality has never been more accessible for borrowers who normally wouldn’t be able to refinance their home. What if you could save $50 on your mortgage payment every month? Or, what if you could save $100? Imagine saving up to $250 a month or even more! That’s $3,000 a year in savings!

How do we go about it?

The Federal Housing Finance Agency (FHFA) has announced that these refinancing options for lower-income borrowers will become available as soon as August, 30th 2021.

For the borrower to be eligible they must have an enterprise-backed loan, meaning that the loan is from Fannie Mae or Freddie Mac. The property must be a 1-unit single-family property that is owner-occupied and borrowers must have an income that is at or below 80% of the area median income. Additionally, applicants may not have any missed payments within 6 months and no more than 1 missed payment within 12 months. A FICO score of 620 or better is also required for those looking to take advantage of this program, as well as not having a loan-to-value ratio greater than 97% or debt-to-income ratio above 65%.

The FHFA also implemented a fee designed to cover losses due to the pandemic. This fee, called the Adverse Market Refinance Fee, has recently been eliminated! What does this mean for borrowers? The elimination of this fee allows even more borrowers to seek refinancing, with lower costs, enabling those who may not have been able to utilize this program.

What will you do?

As much as we would like to be able to predict what interest rates will be in the future, no one truly knows what the market will do. If you previously were unable to refinance your home as a lower-income borrower, the time has never been better to get a better rate! Empower yourself and your finances by calling us now before rates and programs change. We are here to help you through the process and get the best-fitting option that will assist in making your dreams come true!

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