For many people looking to save money. Refinancing can prove to be a very financially beneficial outlet. If you’ve tried to qualify for a mortgage before in the past or have had some income challenges in your business or due to Covid- 19 for example here are some things to be aware of as it pertains to refinancing if you have a high debt to income ratio.
Generally speaking, most mortgage banks do not allow you to refinance if your debt to income ratio is greater than 50%. There is however a new program through Fannie Mae called “Refinance Now” which allows you to refinance with as low as the 620-credit score for conventional financing and up to a 65% debt to income ratio. The reason why this is beneficial is because the extra 15% in debt to income ratio allowance from 50% on a traditional conventional loan to 65%. This new loan can mean the difference between being able to save money, versus not being able to on otherwise more standardized research. The program still offers fixed rate loans fully advertising without a prepayment penalty. If you own the home that you live in, and you’re looking to refinance, but you’ve been turned away before in the past, look to see about the Fannie Mae Refinance Now mortgage loan program. The program is very flexible, offers more for homeowners looking to save money and lower their cost of homeownership.
If you’re looking to refinance start today with a no-cost loan quote for refinance now!