Mortgage Broker offering to refi me from 7.25 to 5.125 via FHLB

[/u/ShoddyBranch3195]

nearly 1 year into my mortgage. The guy who sold me the loan left and there's a new guy who replaced him. I found this out via his email asking if I would consider a refi. Seems way too good to be true but sure I'll take a look at it.

Is there such a thing as this refi program? I visited the FHLB website, web searched, came up with nothing re: a program like this. Of course that doesn't mean it doesn't exist.

Anyone out there who can shed light on this? Seems too good to be true but so was the PPP which basically gave away a few hundred million bucks.

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This is a refinance through Federal Home Loan Bank system- only banks that are members can participate. The refinance program is geared towards people in certain income ranges to make homes more affordable. Your income can’t be greater then $80,400 a year, based on what we have on your purchase application it looks like you qualify. Here are the numbers (im not using taxes and insurance as these amounts stay the same and are paid regardless if you refinance or not)

Currently you are at 7.25%

Principle and Interest (PI) payment is $XXXX

If you qualify we can refinance you at 5.125% with a new payment of $XXXX, lowering your payment $457.00

There are roughly $2,800.00 in bank fees, title fees and other 3rd party fees, these can be included in the loan amount.

With the $457.00 in lower payment these fees are basically covered after 6 months. ( $2,800.00/457=6.12)

Nothing out of pocket.

submitted by /u/ShoddyBranch3195
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Mortgage Broker offering to refi me from 7.25 to 5.125 via FHLB
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