Starting this week the federal government is offering a new program to help low and moderate income borrowers refinance.
The action comes at a time when house values are rocketing. Just make sure the money you pull out of your home is not used to invest in stocks and cyber coins.
“With mortgage rates still hovering not far from all-time lows, now is a great time for homeowners to consider a refi. However, many lenders have imposed tight credit standards, which meant some low- and moderate-income homeowners were denied the opportunity to save by refinancing to a lower rate,” writes BankRates.com.
“Last year saw a spike in refinances, but more than 2 million low-income families did not take advantage of the record-low mortgage rates by refinancing,” FHFA Director Mark Calabria said in a statement. “This new refinance option is designed to help eligible borrowers who have not already refinanced save between $1,200 and $3,000 a year on their mortgage payment.”
For more details, check out the story, writen by Zach Wichter and Jeff Ostrowski.
“Borrowers should contact their lenders for more information. Not all lenders will participate in the program, so shop around with various lenders. Homeowners can verify whether they have an eligible loan with Fannie Mae’s Loan Lookup Tool.”
Learn More From Other BankRate.Com stories:
- How to choose the right kind of refinance for you
- How much home equity do I need for a mortgage refinance?
- Should you refinance your mortgage even if it means paying PMI?
