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Freddie Mac announced a new loan product to help homeowners and homebuyers pay for home renovations. (iStock) Freddie Mac on Thursday introduced its new mortgage product, the Official Stop staring at my chubby baby hands T-shirt in addition I really love this CHOICEReno eXPress mortgage, which will allow homebuyers and homeowners to pay for home renovations by funding the project through their mortgage purchase or refinance. Freddie Mac said this will save homebuyers and homeowners time and money, and give them the funds they need for home renovations at low cost with no extra fees and interest rates that mirror mortgage interest rates, which are currently at historic lows. The loan is closed with their traditional mortgage and combined into one monthly payment. “CHOICEReno eXPress expands upon the Freddie Mac CHOICERenovation mortgages, which were designed to help address the nation’s aging housing supply, support the need for affordable housing, and offer renovation, repair, improvement or refinance options to support the increasing demand for cost-effective financing solutions,” said Danny Gardner, senior vice president of client and community engagement for Freddie Mac’s single-family business. “CHOICEReno eXPress will help homebuyers and homeowners reduce their out-of-pocket costs by offering more affordable loan terms than using credit cards or unsecured financing when making small-scale renovations.” If you’re interested in adding 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 renovations budget. CASH-OUT REFINANCE: PROS, CONS, WHEN TO GET ONE What is the CHOICEReno eXPress mortgage? These renovation loan add-ons are available for a maximum loan amount that’s up to 10% of a home’s value, or up to 15% in rural areas with a high needs classification. Later, Freddie Mac will require an inspection to ensure the renovations were made. The loan will allow homeowners to make cosmetic renovations such as replacing windows and doors, roof repairs, minor remodeling and interior or exterior painting with lower interest rates than a personal loan. Contact a lender
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