Good morning, We purchase our home through NACA in 2012. I must say it is a great program and over the years I recommended NACA to many friends. Some of them purchase homes through the program and two of them are in the process of buying their homes. I would like to know if NACA allows homeowner to refinance their 30 yr mortgage to 15 years. When we purchased our home in 2012, there was no 15 year option.
Unfortunately, NACA does not do any refinancing whatsoever, even of our own mortgages.
Yo are correct that when you closed on your home in 2012, the 15-year loan did not exist yet. The 15-year, “Wealth Builder Home Loan” or as we called it, “Freedom Loan” was created in late 2014 in a cooperative effort between NACA, Bank of America and the American Enterprise Institute.
It features all of the main features of the NACA loan with no down payment, no closing costs, no PMI and no need for perfect credit. Plus it also starts at and even lower rate than the 30-year loan and has a much more aggressive buy down program with each point reducing the rate by 0.5% instead of 0.25%.
It has turned out to be an outstanding product for those who have taken advantage of it, building roughly 40% equity in the home after only seven years.
While we cannot refinance you into the Freedom Loan, there are in fact several lenders on the market who do offer 15-year refi’s. You won’t get the outstanding terms of the NACA loan, but it is an option if you wish to pursue it.