Effective for Clients who Purchased / Refinanced a home with Aurora Financial on or after January 1, 2019.
Rates are Constantly changing. It’s hard for Professionals to predict direction of rates with a high degree of success.
Solution: Aurora Financial No Closing Cost Loyalty Program.
Aurora Financial No Closing Cost Loyalty Program allows for a No Closing Cost refinance, if rates should fall, for the lifetime of the loan you complete with us. Purchase or Refinance today and rest assured if rates drop you can get a lower rate at no cost!
Here’s how it works:
The Aurora Financial No Closing Cost Loyalty Program allows for a new refinance with absolutely no closing fees. All loan related costs or fees for the transaction will be absorbed by Aurora Financial and will not be added to the loan. However, taxes, insurance, lender related payoff fees, interest and impound account setup will still remain the client’s responsibility (if needed). Appraisal Fee is required upfront but will be refunded upon closing.
To qualify for the No Closing Cost Loyalty Program, you must:
1. Subject property must be Owner Occupied.
2. Have a loan amount equal to or greater than $200,000.
3. Qualify for a refinance based on Fannie Mae conforming loan limit guidelines.
4. Must have made 6 Monthly On Time Mortgage Payments.
Calculation Formula*:
The interest rate for the Free Refinance Voucher is calculated by taking the rate on the current Fannie Mae 30 year 30-day required net yield (RNY) rounded up to the nearest eight of a percent (.125%), at the time of lock, plus (+) a margin based on the loan amount (please see below).
The current Fannie Mae 30 year 30-day RNY can be found by visiting www.fanniemae.com.
Aurora Financial No Closing Cost Refinance Loyalty Program Margin*
Loan Amount of New Mortgage
$0 – $199,999 Not Applicable (N/A)
$200,000 – $399,999: Margin 1 %
$400,000 – $726,200: Conforming Loan Limit: Margin .625 %
$726,201 + Conforming High Balance Limit: Margin .625 %
Example:
If the 30 Year 30-day RNY is at 3.25% and the new mortgage amount is $350,000 then the Free Refinance rate would be 4.50% (3.25% (RNY) + 1.25% (margin) = 4.50% (Free Refinance.) This is for example purposes only; the actual RNY can be more or less at the time of lock.
The Current Fannie Mae 15 year 30-day RNY can be found by visiting www.Fanniemae.com.
Aurora Financial No Closing Cost Refinance Program Margin*
Loan Amount of New Mortgage
$0 – $199,999 Not Applicable (N/A)
$200,000 – $399,999: Margin: 1.50%
$400,000 – $726,200: Conforming Loan Limit: Margin 1.50%
$726,201 + Conforming High Balance Limit: Margin 1.50%
Example:
If the 15 Year 30-day RNY is at 2.25% and the new mortgage amount is $350,000 then the No Closing Cost Refinance rate would be 3.50% (2.25% (RNY) + 1.25% (margin) = 3.50% (No Closing Cost Loan.) This is for example purposes only; the actual RNY can be more or less at the time of lock.
* The final rate calculation and/or margin may be subject to adjustments due to loan to value percentage, fico scores, lock period and other factors that may be deemed higher risk by the lender. The Free Refinance will be treated as a mortgage loan refinance transaction and will be locked for 30 days. There is no guarantee that the loan or rate and pricing will be delivered within the lock period and the refinance might be subjected to lock extension costs and/or re-pricing. Aurora Financial reserves the right to amend the terms of this program at any time. Escrow loans Only!
