RefiNow - Fannie Mae's Latest Refinance Option [2021]

 

More than 2 million families could benefit from a refinance, but have not taken advantage of it for one reason or another. This new refinance program is for lower-income borrowers with conforming mortgages, who could benefit from lower interest rates and payments.

The RefiNow loan option, which is available since June 5, 2021 is for qualifying homeowners with a Fannie Mae-owned mortgage. 

You can determine if Fannie Mae owns your mortgage by checking Fannie Mae’s Loan Lookup Tool.

To qualify for RefiNow, homeowners must have:

• A Fannie Mae-backed mortgage secured by a 1-unit, principal residence;
• A current income at or below 80% of the AMI (not the income as of origination of the original loan); FNMA AMI Income Lookup Tool
• Not missed a mortgage payment in the past six months, and no more than one missed mortgage payment in the past 12 months; and
• A mortgage with a loan-to-value ratio up to 97%, a debt-to-income ratio of 65% or less, and a minimum 620 FICO score.

RefiNow helps homeowners by:

• Requiring a reduction in the homeowner’s interest rate by a minimum of 50 basis points and a savings of at least $50 in the homeowner’s monthly mortgage payment.
• Providing a $500 credit from Fannie Mae to the lender at the time the loan is purchased if an appraisal was obtained for the transaction. The lender must pass the credit to the homeowner.
• Waiving the 50 basis point up-front adverse market refinance fee that Fannie Mae otherwise charges to lenders on balances at or below $300,000.

Those who qualify would see their monthly mortgage payment reduced by at least $50 and their interest rate lowered by 50 basis points (0.50%) or more.

For example, if your current interest rate is 3.5% and you qualify for Fannie Mae’s RefiNow program, your new interest rate would be 3.0% or possibly lower.

Some borrowers could also receive a $500 credit to cover the home appraisal. And the adverse market refinance fee — which charges 0.50% on loans of $125,000 or more — may be waived.

With a typical refinance, these types of waivers and guaranteed reductions are not available. Any reductions in rate or payment are directly tied to the borrower’s qualifications — their credit score, debt-to-income ratio, home equity share, and more.

With RefiNow, low-income homeowners will have a unique chance to refinance with guaranteed savings and reduced upfront costs.

Should you wait to use the RefiNow program?

There’s no perfect time for your refinance, every situation is unique, but for lower-income borrowers, the FHFA’s new initiative just may be worth looking into.

With the guaranteed rate cut, reduced monthly payment, and waived fees, the savings could be significant.

If you’re worried about interest rates rising, you should consider applying for your refinance now.

Our team will guide you on the best move for your financial situation.

Take advantage of a new refinance program. Check it out now!

Reach out if we can help!

Aundrea Beach-Greco 

Mortgage Lender, CMPS 

NMLS 333739

📱 +1 702-326-7866

📧 info@aundreabeach.com

🌐 www.AundreaBeach.com

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Aundrea Beach-Greco, CMPS. Licensed Mortgage Loan Officer. NMLS 333739

702-326-7866 info@AundreaBeach.com

Find me online www. AundreaBeach.com

Apply online at www.iLendLasVegas.com