A long stretch with near-record low interest rates motivated a lot of homeowners to refinance over the past year. In a couple of months, there may be an easier way for low-income borrowers to get in on the savings as well.
The Federal Housing Finance Agency (FHFA) announced a program this week that would enable homeowners with Fannie Mae- or Freddie Mac-backed mortgages to refinance. Lenders would be required to ensure eligible borrowers get payments reduced by at least $50 per month and a minimum 50-basis-point interest rate reduction.
The refinance program would also reimburse lenders who credit borrowers up to $500 for an appraisal if they are unable to get an appraisal waiver. For borrowers whose remaining balances are no more than $300,000, the program would also waive the typical upfront 50 basis point adverse market refinance fee.
Eligible borrowers cannot earn more than 80% of the area median income, can't have missed any payments in the past six months (or more than one in the past year), and must also meet debt-to-income ratio and FICO score requirements. By FHFA's estimates, borrowers who use the refinance program could save $100-$250 per month, on average.
This article originally published at https://dc.urbanturf.com/articles/blog/a-refinance-program-for-low-income-homeowners/18203.
Most Popular... This Week • Last 30 Days • Ever
The change would allow for an 80-acre portion of DC's 272-acre Armed Forces Retiremen... read »
The Capitol Hill home has been listed for sale that has a number of serious security ... read »
The listing will hit the market on Wednesday, according to the Washington Business Jo... read »
About a month ago, UrbanTurf examined how condo and co-op prices were driving home pr... read »
When Wall Street buys most of the homes on your block; the $5 million houseboat; and ... read »
With interest rates reaching their highest levels in 22 years, it is critically impor... read »
Just before the holiday, UrbanTurf is taking its semi-annual look at the neighborhood... read »
Plans have been filed with DC's Historic Preservation Office to convert the building ... read »
An application filed with DC this week signals the end is nigh for a McDonald's locat... read »
Madison Highland Live/Work Lofts has plans in the works to convert the 12-story offic... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro