Some reasons you may want to refinance:
- If interest rates have dropped since you last financed your home. (Remember that you need to factor in loan application fees and closing costs, which can be about $1500.)
- If you have an adjustable rate mortgage and you want to convert it to a long-term fixed-rate loan.
- If you want to get 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 would like to take out cash from the equity you have invested in your home to do a Qualified Capital Improvement on your home (make sure to talk to staff about this!)
- If you have a second mortgage or other debt you want to pay off.
Frequently Asked Questions
What steps should I take?
Your first step is to contact MACLT before considering a refinance or home equity line of credit (HELOC). If you live at a condo association, make sure the condo association president knows early on as well. Both MACLT and your condo association (if applicable) are peripherally involved in the process because of your ground lease agreement with us. MACLT is required to be provided a copy of mortgage paperwork and to approve the loan amount so that you do not take out more on your home than it is worth.
Should I expect my lender to contact me when interest rates go down?
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. MACLT staff may be able to give you a sense of current interest rates as well.
How much can I borrow against my home?
The maximum you can borrow against your home is the amount of money you could sell it for. For income-restricted homeowners, the resale price is set by the ground lease, and approved by MACLT staff. For market-rate homeowners, the resale price will be appraised market value.
Which lenders will refinance a MACLT home?
Not every lender offers CLT mortgages. Lending guidelines require that the lender has an established relationship with the CLT to approve CLT loans. The lenders listed in MACLT’s Homebuyer Guide are currently partnered with MACLT to provide MACLT mortgages. MACLT staff can also discuss lending partners with you.