Looking for Congress’ Mortgage Stimulus Program? Freddie Mac’s New Refinance Option “Refi Possible℠” Could be a Better Choice
Thanks to a new initiative from the Federal Housing Finance Agency (FHFA), a new refinance option starts in August 2021. Refinancing can be very helpful to those who have experienced a job loss or some financial impairment since the start of the pandemic. Freddie Mac’s new “no-cash out” refinance offering, Refi PossibleSM helps homeowners reduce their mortgage interest rate through refinancing with expanded eligibility and features. This program is available to all Freddie Mac borrowers with a household income less than or equal to 80% of the applicable Area Median Income.
Getting mortgage help starts by checking if your loan is owned by Freddie Mac. Fill in the information at the following link and take advantage of the current low-interest rate environment by refinancing your existing Freddie Mac-backed loans:
There are certain eligibility requirements for a mortgage being refinanced, such as having a mortgage secured by a 1-unit single-family residence that is the applicant’s primary residence. Refi PossibleSM helps homeowners by requiring a reduction in their interest rate by a minimum of 50 basis points and a savings of at least $50 in their monthly mortgage payment. Qualifying borrowers are guaranteed an interest rate reduction of 0.50% or more. Eligible borrowers with a Freddie Mac-owned single-family mortgage will benefit from a reduced interest rate and lower monthly mortgage payment, helping save an estimated $100.00 to $250.00 a month. Borrowers may also receive a credit of up to $500.00 toward an appraisal on their property if it’s required.
The Mortgage being refinanced must be a First Lien, conventional mortgage currently owned by Freddie Mac, in whole or in part, or securitized by Freddie Mac. This mortgage cannot be a Freddie Mac Relief Refinance Mortgage℠, a Freddie Mac Enhanced Relief Refinance® Mortgage, a Refi Possible Mortgage, or a Mortgage subject to an outstanding repurchase request, recourse, indemnification, or another credit enhancement other than mortgage insurance. This mortgage must also be seasoned for at least 12 months and no more than 120 months.
Applicants also need to meet certain requirements to qualify for Refi PossibleSM:
- A FICO score of at least 620;
- A LTV or loan-to-value ratio up to 97%;
(the amount the applicant owes on their mortgage relative to the value of their property)
- A DTI or debt-to-income ratio of 65% or less;
(That means that less than 65% of the applicant’s monthly total income goes toward existing debts, including their current mortgage)
- No missed mortgage payment in the past 6 months (or only one missed mortgage payment in the past 12 months);
The Refi PossibleSM program offers significant savings for homeowners, so do your research and take advantage of lower interest rates. Consult a loan officer or mortgage broker about your financial situation and get more specific advice.