How New Mortgage Refinance Programs Can Help You
RefiNow™ and Refi Possible ProgramsThe FHFA initiative makes refinancing more accessible and offers savings and reduced up-front costs for those who qualify. The options include RefiNow™ for Fannie Mae borrowers, which is available now, and Refi Possible for Freddie Mac-backed mortgages, which will start in late October. The perks of both programs for those who meet the qualifications include:
- Guaranteed Lower Interest Rate & Monthly Mortgage Payment – Your interest would go down by at least 0.5% and your monthly payment would decrease by at least $50, with the potential for even more savings.
- Appraisal Credit – If an appraisal is necessary, you could get a credit of up to $500 from the lender.
Why It MattersThese offers of savings and credits are not often available. Typically, refinanced interest rates are based on the borrower's qualifications, such as credit score, debt-to-income ratio, the loan-to value ratio on the home and more, which can leave some borrowers at a disadvantage.
RefiNow™ and Refi Possible provide a special opportunity for more people to qualify for a mortgage refinance that also includes the unique benefits mentioned above to help make their mortgage more affordable. On average, the FHFA estimates that RefiNow™ and Refi Possible could help borrowers save anywhere from $100 to $250 per month, which equals a total savings of up to $1,200 to $3,000 per year.
Reasons to RefinanceWhile refinancing your mortgage can save you money that you can put towards other things, it can also enable you to:
- Change the term of your mortgage to pay it off faster
- Cash out on your home’s equity for renovations, large purchases or debt consolidation
- Eliminate Private Mortgage Insurance (PMI)
- Help you qualify for or maximize your share of Profit Payout1