Refinancing Your MACLT Home
Here are some reasons why people refinance their homes:
- If interest rates have dropped significantly since you last financed your home. (Remember that you need to factor in loan application fees and closing costs.)
- If you have an adjustable rate mortgage and you want to convert it to a long-term fixed-rate loan.
- If you want to refinance into a shorter loan term in order to pay off your loan earlier (like going from a 30-year loan to a 20-year loan).
- If you have consumer debt that you would like to roll into your primary mortgage. Just be very, very cautious about this one, as refinancing to pay off consumer debt has gotten lots of people across the country into mortgages that they simply cannot afford to carry.
Frequently Asked Questions
The short answer is no. It is up to each homeowner to keep track of interest rates, and then to contact your lender if you think that it might be a good time to refinance.
The maximum you can borrow against your home is the amount of money you could sell it for. For market-rate homeowners, that is the appraised market value of your home. For income-restricted homeowners, that is the formula resale price (what you paid plus 25% of the increase in market value of your home).
MACLT homeowners are not able to refinance with WHEDA.
AnchorBank and Heartland Credit Union.
Actually, they are going to be pretty similar. AnchorBank will be your option for a fixed-rate mortgage of 15 to 30 years (because they are a Fannie Mae-certified CLT lender). In terms of calculating the value of your home for lending purposes, the lender will look at the allowable resale price of your home. For income-restricted homeowners, the resale price is set by deed restriction (what you paid plus 25% of the increase in market value). For market-rate homeowners, the resale price will be appraised market value.
Fannie Mae purchases loans from banks and credit unions from around the US and packages them into investments. In combination with Freddie Mac, they dominate what is called the “secondary mortgage market”.