FHFA Refi Program
Couldn’t Refinance Because of Lower Income? You May Be Able to Now
Lower Your Mortgage Interest Rate and Monthly Payment. One of the best ways to save money is to refinance your mortgage at a lower interest rate. Unfortunately, not everyone has been able to take advantage of today’s low interest rates due to their income, until now!
Lower Your Monthly Payment: With this new program, you can lower your mortgage payment at least $50 every month. The federal government estimates that some people may even be able to lower their monthly payment by between $100 and $250 each month. That could be a total savings of between $600 and $3,000 per year, every year for the life of your loan. Lower Your Interest Rate: Refinancing through this program will decrease your mortgage interest rate by at least 0.50%, which will lower your mortgage payment. $500 Appraisal Fee Credit: Through the program, you may receive a $500 credit for an appraisal if one is needed, which will make the refinance even more affordable.
To qualify for the new refinance option, a borrower must:
- Have a 1-unit single-family mortgage that is backed by Fannie Mae and is owner-occupied
- Have an income at or below 80% of the area median income
- Have a mortgage that was originated at least 12 months ago
- Have a mortgage with a loan-to-value ratio lower than 97%, a debt-to-income ratio below 65%, and a credit score as low as 620
If you haven’t been able to refinance before due to income, you may be able to now. This is your opportunity to potentially decrease your monthly payment. People whose mortgages are owned or guaranteed by Fannie Mae are eligible now. Those with a mortgage owned or guaranteed by Freddie Mac will be eligible to take advantage of this program on Aug. 30, 2021. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:
If you have questions about this exciting new program, the mortgage professionals at New American Funding are ready to help. Are you ready to save at least $50 per month on your mortgage? Reach out today to find out if you can lower your mortgage payment! And don’t forget to check out today’s mortgage rates to see if you may be able to lower your interest rate.
Contact your New American Funding Loan Professional for full details.