CNBC announced the US Government is rolling out a new program aimed at lower-income homeowners who have not taken advantage of low-interest rates to refinance their mortgage. This is great news for many homeowners who are now starting to feel the pinch of the financial impact of the pandemic.
In this blog, we’re writing about the highlights from the CNBC article published, Thursday, April 29th. In 2020 millions of Americans refinanced their home mortgage to take advantage of record-low interest rates, however, there are still millions of homeowners that haven’t taken advantage of the lower rates.
With the new refinance program millions of eligible borrowers will be able to refinance their mortgage at a reduced interest rate and lower monthly payment starting this summer. According to the Federal Housing Finance Agency, which oversees mortgage-backers Fannie Mae and Freddie Mac, this would save them an estimated $100 to $250 a month. Participating lenders would also need to waive the current adverse market refinance fee for borrowers whose loan balance is no more than $300,000. And if the borrower is ineligible for an appraisal waiver, the lender would need to provide a credit of up to $500.
Of course, borrowers will need to meet eligibility requirements, which include having an income that is no more than 80% of their area’s median income.
Sources:
CNBC Article – 2 million homeowners may be eligible for this new mortgage refinancing program, published Thursday, April 29, 2021; by Sarah O’Brien
CNBC Article – Refinancing your mortgage will cost more thanks to an ‘adverse market’ fee, published Friday, September 18, 2020; by Sarah O’Brien
