If you purchased your home with the USDA Rural Housing Program’s 0% down payment home loan, it may be a great time to refinance. Many people are not aware that the USDA also offers home refinance programs.
The intent of a refinance transaction is to provide borrowers who have a satisfactory payment history the opportunity to benefit from a lower interest rate and increase their ability to be successful homeowners.
Two options for refinancing are available:
- Non-streamline Refinance.
- Streamline Refinance.
Non-Streamline Refinance
Non-streamlined refinance. The non-streamlined refinance option requires an appraisal. The borrower may include in the loan the principal and interest of the existing loan, closing costs, lender fees, and the current guarantee fee to the extent sufficient equity in the property exists, as determined by an appraisal. The appraised value may be exceeded only to the amount financing represents the prevailing guarantee fee. This loan is subject to an annual fee, which when computed monthly, the 1/12 portion of the annual fee shall be included in the principal, interest, taxes, and insurance (PITI) calculation.
Streamline Refinance
Streamlined refinance. The streamlined version does not require a new appraisal. The loan amount cannot exceed the principal amount of the existing loan refinanced plus the one-time guarantee fee. Accrued interest, closing costs, or lender fees cannot be financed with
this option.
Marimark Mortgage
Marimark Mortgage is based in Tampa, Florida, and serves the mortgage needs of homebuyers, homeowners, and investors in Florida, Virginia, and Pennsylvania.
We specialize in mortgages for first-time homebuyers, conventional home mortgages, refinance loans, reverse mortgages, and FHA, VA, and USDA mortgage options. We’ve worked extensively with cash-out refinancing and help clients to lower their monthly mortgage payments.
To get started with a mortgage to buy your next home, please fill out our Quick Mortgage Application or contact us.
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