Your credit union may be able to lower your monthly mortgage payment this summer through a special government-backed refinance initiative! You could save $50 to $250 per month — and you might not know it.
Are you one of them?
The government’s two main mortgage enterprises, Fannie Mae and Freddie Mac, recently announced new refinance options for eligible homeowners depending on their financial situation. Available this August, Refi Possible by Freddie Mac and RefiNow, launched in June by Fannie Man can help potentially eligible borrowers like you refinance your mortgage if you make at or below 80 percent of your local region’s median annual income. Your mortgage rate would be reduced by a half-percentage point or more.
You can also receive a $500 credit for an appraisal if one is obtained. Additionally, you can roll up to $5,000 in closing costs into your mortgage, which frees up money for cash-to-close funds. And… you can also get the “adverse market refinance fee” waived.
To qualify for Refi Possible or RefiNow, you must have:
- A Freddie Mac or Fannie Mae-owned mortgage where your house is the collateral behind the mortgage and also your “primary” residence. You can determine which government entity owns your mortgage by visiting Freddie’s Loan Look-Up Tool or Fannie’s Mortgage Loan Look-Up resource.
- No missed payments in the past six months, and no more than one missed payment over the previous 12 months.
- At least three percent equity in your home, which is the difference between your current mortgage principle owed and your property’s estimated market value.
- A debt-to-income (DTI) ratio below 65 percent. Your DTI is the percentage of gross monthly income (pre-tax) that is taken up by all monthly debt payments in your budget.
- A minimum credit score of 620 or higher.
- * Details are forthcoming for potential homeowner refinance candidates who are in forbearance due to the COVID-19 pandemic.
Don’t miss out on this unique opportunity! Inquire at your credit union today.