Govt. expands refinancing options for low-income homeowners

The Federal Housing Finance Agency on Wednesday announced a new refinance option for certain low-income borrowers, helping them take advantage of low interest rates and save money each month. Low interest rates have led to a recent spike in mortgage refinancing, but many low-income families did not not take advantage. The new option could help eligible borrowers save $100 to $250 a month. To qualify, borrowers must have an income at or below 80% of the median income for their area. They must hold a Fannie Mae or Freddie Mac backed loan, for a single family home that they reside in. The new refinance option will be available to eligible borrowers beginning this summer.