Refinance into a Massachusetts MyCommunity Loan.
If you are a homeowner who may be at risk of a loan resetting to a higher interest rate, and it you are not able to participate in the Massachusetts Home Saver program, then you may be able to receive help with your mortgage and reduce your risk of high monthly payments in the future by taking advantage of the state’s MyCommunity Refinance Loan.
These loans will provide borrowers with the ability to refinance their existing loan into a 30-year mortgage (or less). The mortgage will be fixed-rate, and the maximum that can be provided is $417,000 for either a condominiums or a single-family home. MassHousing will be the loan servicer, and they can also provide help with paying closing costs, and they also offer a no-point option. They do what they can to limit all fees and extra costs during the refinance process. Even low and moderate income borrowers can access cheap, discounted mortgage insurance through the assistance program.
Details of MyCommunity loan program
If you are a borrower looking for help, know that you can refinance up to 100 percent of the appraised value of your single-family home or condominiums, refinance up to 97 percent of the appraised value of 2-family homes, and up to 95 percent of the appraised value of 3- to 4-family homes. Not all banks can participate in the MyCommunity Refinance Loan program, as only state approved lenders may originate the loans, which also will increase the effectiveness of the program.
Some other background and inner workings of the program include the fact that MassHousing-approved lenders can originate MyCommunity loans and they then can sell the mortgages to the MassHousing agency. They will then turn around and proceed to sells the loans to the federal government owned Fannie Mae, using the Fannie Mae cash window. While the loan is sold to the government agency Fannie Mae, MassHousing retains the servicing of the mortgage and they will be the company that you deal with on a monthly basis and you will need to make payments to them.
There are some program conditions. Including income thresholds, as only low and moderate income families or individuals will be able to apply for this program. The applicant must also have decent credit history.
Call Mass Housing at 800.882.1154 to learn more about the Massachusetts Home Saver program.