Image

12:32 PM / Tuesday October 4, 2022

30 Sep 2021

More than 3 million homeowners are saving money by refinancing: 3 things to consider

  • Facebook
  • Twitter
September 30, 2021 Category: Color Of Money Posted by:

BPT

Despite mortgage rates hitting historic lows during the last year, many homeowners still haven’t considered refinancing their mortgage —  essentially, replacing an existing mortgage with a new mortgage loan that has new terms and potentially a lower interest rate. Homeowners in lower-income brackets may be convinced they won’t qualify for refinancing because of high debt compared to income, poor credit scores or lack of savings to cover closing costs.

However, new refinancing options are available to help make monthly housing payments more affordable. Fannie Mae —  which helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America —  recently released RefiNow, an option that makes it easier for lenders to help eligible homeowners earning at or below 80% of the area median income refinance at a lower interest rate and reduce their monthly mortgage payment.

“Lower-income borrowers typically refinance at a slower pace than high-income borrowers,” said Katrina Jones, vice president of Racial Equity, Strategy & Impact at Fannie Mae. “Especially for those who have a high —  or adjustable-interest rate loan, refinancing may help make housing costs more affordable and sustainable by lowering their mortgage payments, reducing the total amount of interest paid over the life of the loan or providing more stable monthly mortgage payments.”

The new RefiNow option requires that eligible homeowners achieve a savings of at least $50 in their monthly mortgage payment, but they can potentially save up to $100-$250 per month, according to the Federal Housing Finance Agency.

It also offers savings on up-front out-of-pocket appraisal expenses up to $500.

“We can put money-saving refinance options in reach for more homeowners by removing some perceived barriers —  such as appraisal costs —  to improve affordability and promote sustainable homeownership,” said Jones.

Jones provided three reasons to consider refinancing now:

•  Interest rates are low – Mortgage rates remain low, despite moderate increases. According to Fannie Mae research, experts expect the 30-year fixed mortgage rate to average 3% through 2021, before beginning to rise in 2022. The takeaway for homeowners: There’s still time to consider refinancing.

•  Lower your monthly mortgage payments – Refinancing at a lower interest rate may help decrease monthly mortgage payments, which could increase monthly savings. Refinancing may also help reduce the total amount of interest paid over the life of the loan, depending on the terms of the new loan and the existing loan.

•  Getting started is a phone call away – Homeowners should contact several mortgage lenders to discuss refinance options to find the best option and terms for their situation, and should always compare offers and shop around.

Homeowners wondering if refinancing makes financial sense can access Fannie Mae’s Refinance Calculator and learn more about refinancing options at KnowYourOptions.com.

  • Facebook
  • Twitter

Leave a Comment

Recent News

Stateside

Biden signs bill to avert government shutdown, aid Ukraine

October 1, 2022

Tweet Share Pin Email By KEVIN FREKING WASHINGTON (AP) — President Joe Biden signed into law Friday...

Education

A message from Superintendent Watlington regarding the shooting outside of Roxborough High School

September 30, 2022

Tweet Share Pin Email Dear School District of Philadelphia staff and families, The School District of Philadelphia...

Entertainment

The Jacksons in concert on September 10

September 30, 2022

Tweet Share Pin Email (Photos/Afea Tucker) The Jacksons — Jackie, Tito, and Marlon, along with a backup...

Diaspora

Puerto Ricans await aid, fret about post-hurricane recovery

September 30, 2022

Tweet Share Pin Email ABOVE PHOTO: A man points to a home that was collapsed by Hurricane...

Go With The-Flo

Lil Wayne is looking to make a big profit from the sale of his waterfront Miami Beach mansion

September 30, 2022

Tweet Share Pin Email ABOVE PHOTO: Lil Wayne (Paul Smith / Featureflash / Shutterstock) By Flo Anthony...

Food And Beverage

What’s Cookin’? Vegan Shortbread Cookies

September 30, 2022

Tweet Share Pin Email Tweet Share Pin Email Related Posts What’s Cookin’? Chewy Five Ginger Spice Molasses...

The Philadelphia Sunday Sun Staff