The USDA Rural Housing Service announced new changes this week that will make it much quicker and cheaper for homeowners to refinance their USDA mortgages.
Homeowners current on their mortgages for the past 12 months will no longer be required to secure an appraisal, provide a credit report, or undergo a debt-to-income calculation when they refinance for a 30-year term.
According to the USDA, approximately 9,500 homeowners have refinanced their home loans thus far. The average savings is approximately $150 per month, and some borrowers saved as much as $600 a month.
The changes take effect June 2, 2016.
USDA Rural Housing Service Administrator Tony Hernandez said this about the changes,
“These changes reaffirm the Obama Administration’s commitment to middle-class Americans, and I am pleased that we continue to provide affordable housing to support thriving economies in rural communities.
Helping homeowners refinance their homes to reduce their monthly payments and take advantage of low interest rates will bring increased capital to rural residents and the communities where they live and work.”