Freddie Mac Launches New Home Renovation Mortgage, Here’s How To Get One

Freddie Mac has announced a new loan product to help homeowners and home buyers pay for home renovations. (iStock)

Freddie Mac Thursday presented its new mortgage product, the CHOICEReno eXPress mortgage, which will allow buyers and homeowners to pay for home renovations by financing the project through the purchase or refinancing of their mortgage.

Freddie Mac said it would save buyers and homeowners time and money, and give them the funds they need for low-cost home renovations at no additional cost and with no interest rates that reflect mortgage interest rates, which are currently at historically low levels. The loan is closed with their traditional mortgage and combined into a single monthly payment.

“CHOICEReno eXPress extends the Freddie Mac CHOICERenovation mortgages, which were designed to help meet the country’s aging housing supply, meet the need for affordable housing and provide options for renovation, repair, improvement or refinancing to meet the growing demand for cost-effective financing solutions, “said Danny Gardner, senior vice president of customer and community engagement for Freddie Mac’s single-family business.” CHOICEReno eXPress will help buyers and homeowners reduce their personal expenses by offering more affordable loan terms than using credit cards or unsecured financing for small-scale renovations. ”

If you want to add the home improvement loan to your mortgage purchase or refinance, visit an online marketplace like Credible to find a lender with lower rates. By comparing mortgage rates from multiple lenders, borrowers can save hundreds of dollars on their monthly payments and leave more room in their home improvement budget.

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What is the CHOICEReno eXPress mortgage?

These home improvement loan add-ons are available for a maximum loan amount of up to 10% of a home’s value, or up to 15% in high-need rural areas. Later, Freddie Mac will demand an inspection to make sure the renovations have been done.

The loan will allow homeowners to perform cosmetic renovations such as window and door replacement, roof repairs, minor renovations, and interior or exterior paint jobs with lower interest rates than on a loan. staff.

Contact a lender and inquire about adding the CHOICEReno eXPress mortgage to your mortgage purchase or refinance. Visit Credible to be prequalified for a mortgage in minutes without affecting your credit score.

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What other options are available for home renovations?

The CHOICEReno eXPress mortgage allows homeowners to combine renovation financing with their mortgage purchase or refinance and bundle it into one monthly payment. However, there are also other options available for homeowners who need money for home improvements.

Personal loans: Although they are a more expensive option, unsecured personal loans are still relatively inexpensive amid historically low interest rates. Homeowners can take out a personal loan to have cash in a few days to pay for their renovations.

With Credible, homeowners can view multiple lenders and rates at once and find the personal loan that best suits their needs. It only takes a few minutes to qualify.

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Refinancing of collection: Homeowners can also consider a cash refinance or even a home equity loan to finance their home improvement project with the lowest interest rates today. With home prices rising at an all-time high, many homeowners have more equity available in their homes to cash out. But rather than a fixed loan amount cap of 10% of the home’s value, obtaining a cash refinance typically requires homeowners to have a 20% interest in their home after the cash refinance. ended. Visit Credible to speak to a mortgage expert and compare your options for withdrawing money from your home at the lowest rates.

Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.


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