RefiNow is a government backed program to help low income borrowers refinance their mortgages under better terms so they can save up to $3,000 per year.
19% of people who refinance do so to reduce the amount of time left on their loan.
Everyone likes to save money, and one of the biggest expenses any of us has is our mortgage. RefiNow is a government-backed program to help lower-income borrowers refinance their mortgages under better terms so they can save up to $3,000 per year.
What could you do with that extra cash?
Refinancing is when you take out a new loan in order to pay off your current loan. When you close on the new loan, the old one will be paid off with the money from the new loan, or a portion of that money, and the account will be closed.
From that point on, everything continues under the terms of the new loan. It no longer matters how many years were left on your previous loan, what the interest rate was, or what your payments were. In order to understand both the benefits and drawbacks to refinancing, it's important to understand that the new loan completely replaces the old one.
Homeowners consider refinancing their mortgages for many reasons. The most common reason is to save money. A secondary reason for refinancing is to get extra cash out of the equity in the home and use it to make home improvements. There are other, less common reasons people refinance loans as well.
According to Zillow, 19% of people who refinance do so to reduce the amount of time left on their loan. The same sources says that 4% of people refinance to change their loan type. A common reason to change loan types is to move from an FHA loan to a conventional loan once credit has improved. This allows the homeowner to save some money on insurance once the loan is paid down.
As we said previously, the most common reason people refinance a mortgage is to save money. If you'd like to save money on your mortgage, you may be wondering exactly how refinancing allows you to do that. There are actually several mechanisms at play that can help you save money through mortgage refinancing:
RefiNow is a special program by Fannie Mae to help moderate income households refinance their mortgages to save money. Qualifying buyers will be guaranteed an interest rate at least 0.5% lower than their current rate. The new payment must be at least $50 per month lower than the current payment, though borrowers may see a greater reduction. That's up to $3,000 a month less than they were paying before. In addition, Fannie Mae will pay up to $500 for an appraisal if the lender requires it, to further help low-income borrowers.
So, if refinancing sounds like a great way to save money and RefiNow sounds like a great way to realize those savings, it's time to find out how much lower your mortgage payment can be. The first step is to find out whether you qualify for a RefiNow loan. Because of the savings and the guarantees put in place by Fannie Mae, there are some pretty strict requirements that must be met in order to qualify for RefiNow. However, the list is short and breaks down into four categories:
If you're ready to see how much money you can save by refinancing your loan with RefiNow, visit our loan refinancing page and get started today!
You know exactly what an extra $3,000 per year could do for your family.