New proposal to remove barriers to capital creation and wealth growth for low-income borrowers
Charlotte, North Carolina, Jul 27, 2021 / PRNewswire / – Ally Home, Home Mortgage Lending Division Union bank, today announced the launch of RefiNow, a home financing option to better serve borrowers who cannot qualify for other refinancing options. Barriers that prevent homeowners with lower incomes from refinancing often cause these borrowers to refinance at a slower pace than those with higher incomes. RefiNow is helping more borrowers take advantage of today’s low mortgage rates while continuing to promote a stronger and safer home finance system – all in line with Ally’s Do It Right Pledge for current and future homeowners.
“Historically low rates make now an exceptional time to refinance mortgages, but so far many low-income consumers – the very people who most needed financial help – could not qualify for traditional refinancing options and benefit from these lower rates. “, – the message says Glenn Brunker, the president Union house… “Through RefiNow, Union house does its best to help borrowers save money every month through lower interest rates, while allowing them to build capital, increase wealth and promote economic mobility. “
RefiNow is available to borrowers with a mortgage secured by Fannie Mae who wish to refinance their only condo, primary residence. To be eligible, borrowers must have a current income of at least 80% of the median income of the applicable area for the location of the property. RefiNow also requires a loan-to-value ratio of 97% or less, a debt-to-income ratio of 65% or less, and a minimum of 620 FICO points.
Additional eligibility requirements include a reduction in the homeowner’s interest rate of at least 50 basis points and at least USD 50 in monthly savings for the payment of the mortgage loan. Borrowers eligible for the RefiNow program will not be charged an attestation fee. For more information visit Fannie Mae RefiNow | Ally…
About Ally Financial Inc.
Ally Financial (NYSE: ALLY) is a digital financial services company committed to its “Do it Right” promise to its consumer, commercial and corporate clients. Ally is comprised of the industry-leading independent auto loan and insurance business, the award-winning Digital Direct Banking (Union bank, A member of the FDIC and Equal Housing Lender, which offers mortgage lending, point-of-sale lending, and various deposit and other banking products), corporate finance business for stock sponsors and mid-market companies, and securities brokerage and investment services consultants. A tireless ally when it comes to money, Ally helps people save well and earn good money so they can spend on what matters to them. For more information please visit www.ally.com and follow @allyfinancial.
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SOURCE Ally Financial