Welcome Winnebago Homebuyer!
In addition to the information located here, you are encouraged to look through your homebuyer packet, as many of the key policies and terms can be found there.
Traditional refinancing of a home loan held by your primary lender entails applying for a new loan, being approved for the new loan, and the new loan holder paying off your existing loan. Homeowners may choose to refinance through the same lender, or may seek a new lender.
Homeowners typically refinance to secure a lower interest rate or an extended term with reduced monthly payments. Homeowners may also seek to borrow funds for important home repairs as part of the refinance, choosing to borrow more than the payoff amount to free up cash for the home project.
Refinancing will almost always involve costs to the homebuyer, including charges for the application, appraisal, title, and others. Because of these costs, refinancing may not always be financially wise, even if you can lower your rate. Homebuyers are encouraged to research their options, and should consider talking with multiple lenders to see what options are available.
We have assembled an excellent overview guide for you to use in determining if refinancing is a wise choice for you. Take a look at the When Does It Makes Sense To Refinance Guide.
Homeowners with multiple home loans will have an added step for refinancing. To enable refinance, the homeowner will either need to pay off the Winnebago Homebuyer loan or be approved for subordination. There is no way to skip or avoid this. Homeowners are encouraged to plan early for this, as processing for subordination can take up to two weeks (or longer if the directions are not followed).
Mortgage Subordination is explained in detail in the next section of this page.
The home loan subordination process can be a confusing concept - to help make it a bit more easy to understand, we assembled the Mortgage Subordination Explained Visually Guide.
The Winnebago Homebuyer Subordination Policy> details the terms that must be met for the Winnebago Homebuyer Program to approve your request for subordination.
Before moving forward, be sure that you have reviewed the handouts within this page and are confident this is a wise financial move. Also, review the policy to ensure that your refinance terms fit within the subordination requirements.
If everything looks good, you will talk to your lender about submitting a request for subordination. Part C of the Winnebago Homebuyer Subordination Policy> details the specific steps that must be taken to request subordination.
Important: We commonly receive incomplete or inaccurate documentation as part of subordination requests, causing delays that can potentially jeopardize the approval with your primary lender.
As a borrower from our program, you have a contract in place to repay our funds. Our offering of a subordination option is an added service to you, and is exclusively designed to protect our investment while ensuring that the refinance moves you in a positive financial direction.
As a result, the approval of your subordination request is not guaranteed and will be denied if all terms are not met.
If you are unable to meet the mandatory subordination terms, your only options are to either pay off the full Winnebago Homebuyer loan or to postpone refinancing until such time as you can meet the policy terms.