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

.

.

#HomeLoansForEveryone #AundreaBeachGreco #AundreaBeach #thebeachgrecoteam #AdviceMatters #Mortgage #Mortgages #MortgageLender #MortgageRates #Realestate #Home #Refinance #Equity #Loans #Credit #CreditRepair #LasVegas #Nevada #Investment #Properties #Homebuying #HomeForSale #DreamHome #NewHome #Homeloans #Finance #BuildWealth #FinancialFreedom

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

Fed Cuts Rate to 0% - What does that mean??

Fed Funds Rate does NOT equal Mortgage Rates

Today (3/15/2020) the federal reserve announced another rate cut and here’s what that means to YOU...

• Fed cutting rates is a short term overnight bank to bank lending rate which DOES NOT have a direct impact on mortgages.

• This cut will lower rates on short term items like credit cards, home equity loans, auto loans and other consumer loans that are affected by the “prime” rate.

What does this mean for YOU and mortgage rates?

• Could move mortgage rates lower?  Yes, but they could also go higher based on this. If the stock market rallies tomorrow on this news, it could actually cause long term rates (mortgages) to increase.

• Mortgage rates are based on the MBS (mortgage backed securities) market, which is independent from the treasury bond as well as the stock markets but typically reacts within certain tolerances of those financial markets.

See link for FED OMC notice.

That being said, you should also know that the FED announced Quantitative Easing 4! Also know as QE4! 

This should be good for mortgage rates!

What is QE4? It is a financial stimulus package that will hopefully reverse the negative direction of the Stock, Treasury Bond, and Mortgage-Backed Securities (MBS) markets.

These are the main financial moves the FED will make in QE4:

- Fed Funds Rate now 0-0.25% (matches record low)
- $500 Billion in new Treasury Market purchases
- $200 Billion in new Mortgage-Backed Securities purchases (This should help mortgage rates)

In summary ... mortgage rates should hopefully go down. This is great for buyers! And of course, for people that already have a mortgage that they want to refinance and missed the first dip! 

So, people in a position to refinance could get another opportunity if they were not able to lock in a few weeks ago! 

However, they need to be ready to take advantage of it! 

BE INFORMED - Know that interest rates may go down quickly but could jump back up just as fast so don't lollygag.  Get ready now. 

If you, your clients, family, or friends have questions, or would like to see if a refinance might help you or make sense, please feel free to reach out to me. I am happy to help!

Stay Tuned!!

Delayed Financing: Recoup Your Money Right Away

Buying a home for cash might seem a little out of the realm for most people, but if you have the funds and are in a competitive market, it may be the way to go.  You can now get most of your cash back within 24 hours... In the past, at least 6 months would have to pass before the you could refinance the property with a cash-out refinance. Today, the wait is strictly 24 hours – which means the borrower can recoup his money right away.

How it Works

If you purchase a home in cash and want to recoup your funds then you can apply for the Fannie Mae Delayed Financing program. This program allows you to take out a loan on the home you just paid for gaining some of your capital back. There are restrictions on how much you can take out, however, and of course, qualifications that must be met.

Qualifications Required

Fannie Mae Delayed Financing can be used on a variety of different types of properties. Primary, secondary, and investment homes are all eligible for this financing. Where the differences come in is how much of the equity can be taken out with this cash out refinance. If you are living in the home as your primary residence, you can take out up to 70% of the equity of the home, If the home is a second home or investment, you are only allowed to take out 60% of the equity with the cash out refinance. If this is an investment property, you are not allowed to have more than 10 properties in order to qualify, although some lenders will maximize that number at 5 properties.

In addition to standard loan qualification guidelines, such as meeting the minimum credit score and debt ratio requirements for the loan, the Fannie Mae Delayed Financing program has a few other stipulations:

• You cannot have purchased the home from a relative, friend, or co-worker. You must have what is called an arms’ length relationship with the seller, basically meaning you did not know the seller.
• The cash used to purchase the property must be able to be sourced. The lender needs to know that you used your own money to purchase the home.
• If you used money from another loan, such as a Home Equity loan, the cash taken out of this home’s equity will need to be used to pay off that home equity loan before you are given any of the cash from the loan.
• You must provide the CD from the closing showing that you did, in fact, purchase the home.
• The title company will perform a search on the property to ensure that there are no existing liens on the property before you close on the loan.

Advantages of the Fannie Delayed Financing Program

The Delayed Financing Program offers buyers a valuable advantage; they are able to make a cash offer on the home. Most sellers are much more willing to take a cash offer than one with a financing contingency, which means you get the home faster. In a competitive market, that could be a huge competitive advantage. If you have the funds to purchase the home right away, you can do it, knowing that you will get your cash back in a few short weeks after the approval for the Delayed Financing Program goes through. It also allows buyers to purchase a property that would otherwise never get financing. With a little work and a little capital outlay, the buyer can eventually get a large portion of his cash back, enabling him to purchase other investment properties or invest his money in other ways.

As with any loan, you will have to meet certain requirements, but the Delayed Financing Program is available in all 50 states. If you are curious if you would be eligible for the program, talk to a lender before making the cash offer, just so you know where you stand. If your credit is in disrepair or you have a high debt ratio, you may not qualify until you work on your finances. Once everything is on the up and up, you may be a great candidate for this program, allowing you to jump right into real estate investing.

Let us know how we can help!

Aundrea
702-326-7866
www.iLendLasVegas.com

3 Steps To Challenging A Low Home Appraisal During A Mortgage Transaction

Don’t Let a Low Appraisal Ruin Your Real Estate Transaction

In any residential real estate deal, there’s a lot riding on the home appraisal. If you’re selling a home, a low appraisal can make it difficult to get what your home is worth. If you’re purchasing and the appraisal comes in under contracted price, then you may not be able to secure financing.

For refinancing, a sub-par appraisal can result in higher interest rates or having private mortgage insurance premiums. It may even prevent the refinance from going through at all. Fortunately, you can challenge a low home appraisal. Talk with the experts and then follow these steps.

Get a Copy of the Appraisal

Before you can dispute the appraisal, you’ll need to know how and why the appraiser undervalued the home. By law you are supposed to receive a copy of the appraisal, so if you don't have it handy, ask your real estate agent or mortgage lender to get a copy of the appraisal for you. Reviewing it with them will give you useful insight into why the appraiser valued the home the way he did.

Do A Comparison

In the appraisal, you’ll find a list of similar homes to yours that the appraiser used to value your home. Sometimes, you may find that many of the homes on the list aren’t really comparable at all. Some may have smaller lots or lower square footage. Others may be in poor condition or lack similar upgrades and amenities. You may also find that the appraiser compared your home to sold listings in nearby, but less desirable neighborhoods or school districts.

Search for Comparables

Between you and your realtor, you should be able to come up with a list of additional comparable properties for the appraiser to consider for a re-valuation purpose. It may just be that the appraiser didn’t fully understand local market conditions or didn’t do the proper research or was just swamped with work - he is human.

Sell the Sizzle

It’s possible that the appraiser may have missed certain details about the house during the initial evaluation. For example, he/she may not have taken note of the upgrades - renovated kitchen, remodeled bathroom, or eco-friendly AC system. Make a list of as many upgrades as you can come up with, and have that ready to present to the appraiser.

State Your Case

Before ordering a second appraisal (if the lender will allow it), see if you can get the previous appraiser to reconsider their report. Don’t just give them your opinion; back it up with the data you’ve gathered. And who knows - They may see things your way and be willing to re-value the property.

Get a Second Opinion

If the appraiser simply won’t consider your request for a re-value assessment, and you feel strongly that the home’s value is higher than assessed then you may want to consider getting a second appraisal (if the lender will allow it). 

You may be able to demand a second appraisal from the mortgage lender. If granted, the bank will send another appraiser to inspect the property.  It will come out of your pocket, but it could turn a stalled real estate transaction into a success.

Best of Luck!

Whether you’re buying, selling, or refinancing a home, we hope you reach out to experts in your market to help you get the appraisal you need to get the deal done. Oh, and if you’re currently looking for a mortgage, we’re here for you!

Cheers-

Aundrea

Contact us today 702-326-7866

www.iLendLasVegas.com

Three Great Reasons to Consider a Cash-Out Refinance

Interest rates on home loans are near their best levels of the year, while home values in many parts of the country have increased.  In this environment, many homeowners are considering a “cash-out” refinance.  This is where you pay off your old mortgage by getting a new mortgage with a higher balance.  The difference between the old loan and the higher-balance new loan is called “cash-out.”  That’s because you’re walking away from the new closing with cash.  Here are three reasons why you may want to consider a cash-out refinance:

• Pay off other debt that may carry a higher after-tax interest rate. For example, the interest on up to $100,000 of cash-out proceeds may be tax deductible if you itemize your deductions and if you’re not subject to the Alternative Minimum Tax (AMT).  Please reference IRS publication 936 and see a CPA or tax advisor for more details.
• Make home improvements – keep in mind that there are some home improvements that may add to the value of the home or at least help you maintain its value. These may include an addition to the house, a new kitchen, and upgraded landscaping.
• Prepare for a large upcoming expense – increasing your mortgage balance could be a budgeting strategy if you have a large upcoming expense that would otherwise cause you to go into credit card debt. These expenses can include unexpected medical bills, new furniture or major appliances.

The great thing about today’s low-interest rate environment is that your monthly payment on the new mortgage may end up being very close to what you’re paying right now.  

Please contact me for more information or to run the numbers for your specific scenario!

Aundrea 

702-326-7866

info@aundreabeach.com

Refinancing Means More Than Monthly Savings

You refinance to a lower rate, and you get a lower payment. But the opportunities don’t stop there.

Reduce your balance faster. With a lower interest rate, you pay more principal with each payment, especially in the first years of the loan. Example: After five years of payments on a 30-year loan of $200,000 at 4%, you would pay $19,706 in principal vs. $17,105 on the same loan at 5%. That's an extra $2,601 in benefit on top of the $7,052 of interest savings. Total advantage = $9,653

Own Free and Clear Sooner. There are two ways to make this happen:

     • Pay extra principal. Apply your monthly savings toward principal to shorten your loan term by several years. Example: Using the same loan terms from above, pay your $118/month savings as extra toward principal and cut the loan from 30 to 24.33 years.
     • Refinance for a shorter term. Rates on 15-year loans are typically lower than 30-year loans, so a payment on a shorter term may still be within a comfortable range for you.

Maximize Your Rate of Return Through Investments. If you deposit the $118 monthly savings from the example above into a tax deferred account earning 6% over time, it will grow to $81,852 in 25 years. If you use the savings to increase your 401K contribution with a 50% employer match, that figure would equal $122,782. Earning 6% on your money may be tough right now, yet historically, returns on a properly balanced and diversified portfolio are 7% or better. Always consult with a properly licensed financial advisor when making investment decisions.

Tap Into Your Equity. If you need to make repairs or improvements, you may be surprised at how much cash you might be able to free up without increasing your monthly payment. The same can be said for financing college educations or purchasing a second home or investment property.

Enjoy Peace of Mind. There’s comfort in making a prudent decision and putting a plan into action.

We're here to review your options and help you decide what might be right for you.

www.iLendLasVegas.com

MEASURING THE BREAK-EVEN POINT ON REFINANCING

TWO WAYS TO MEASURE THE BREAK-EVEN POINT ON REFINANCING

According to recently released estimates, over 8 million American homeowners could benefit from refinancing at today’s low interest rates.  Here are three questions to ask yourself in order to figure out if refinancing makes sense for you:

1 – Interest & Cost Benefit:  What would be my interest and cost savings if I refinance into a lower interest rate?
For example, assume you could save $50 in monthly interest expenses if you paid $2,500 in closing costs to refinance.  In this case, it would take you 50 months to break-even ($2,500 costs / $50 monthly savings = 50-month break-even).

When you calculate your refinancing costs, you should include all the closing costs on the new loan, but you should not include the pre-paid interest or pre-paid items that go into your new escrow account.  That’s because you’ll get a refund of whatever is in your existing escrow account after you pay off the current mortgage.  In some cases, the lender may allow you to pay less closing costs in exchange for a slighter higher interest rate.
When you calculate your interest and cost savings, be sure to include the mortgage insurance that you may be able to reduce or eliminate by refinancing.  For example, assume your home value has increased from the time you purchased the home.  The mortgage insurance may be less if the mortgage balance only represents 85% of your current home value vs. 95% of your current home value.

2 – Cash Flow Benefit: How would my overall cash flow situation change if I refinance?
Here are three examples of when it could make sense for you to refinance even if your new interest rate is not that different from your current interest rate:

• Assume you took out a car loan or racked up some credit card balances that carry interest rates that may be higher than current mortgage rates. You may be able to benefit from a debt consolidation refinance.  In this case, be sure to compare your current blended interest rate scenario vs. the new refinance scenario.
• Assume you recently completed some home improvements, or you’d like to make some home improvements in the near future. Trading in your current mortgage for a new one through a “cash-out refinance” may be the way to go.  If you go this route, the IRS gives you a 24-month look back period and a 12-month look forward period to gain the coveted “acquisition indebtedness” tax deductibility status.  For more details, please ask me for my article titled,Three Things You Should Know if You’re Pulling Cash-Out for Home Improvement.
• Assume you have an upcoming large expense where it makes more sense to use a low-interest-rate mortgage vs. paying cash or liquidating other investments. In this case, you could use the funds from a “cash-out refinance” in order to preserve your cash and/or other investment assets.

Please contact me for details on any of these ideas, or to evaluate your mortgage options.

Now Is the Time for a HARP Refinance

Underwater on your mortgage and still haven’t refinanced? You may think that you missed the window or are not eligible, but with interest rates still near historic lows and an expanded Home Affordable Refinance Program (HARP) it may be within your reach.

While it’s true that home prices have risen steadily over the past year and a half, approximately 24 percent of American homeowners are still underwater on their mortgages. This is especially true of those living in areas hardest hit by the housing and economic crisis. The Federal Housing Finance Agency (FHFA) estimates that there are between 1 million and 2 million borrowers eligible for HARP who are underwater are paying above-market interest rates. You could be one of them.

Why do a HARP refinance?

Borrowers nationwide are reaping significant savings — either by lowering their payments, reducing their interest rates and/or securing a fixed rate. Homeowners who refinanced through HARP during the first quarter of 2013 will save an average of $4,300 in interest payments during the first 12 months.

Take homeowners Josh and Kelly in Tampa, FL, who were $80,000 underwater on their mortgage. By refinancing under HARP last year, they were able to lower their interest rate by nearly 2 percent, reducing their monthly payments by about $520.

And HARP is now simpler than ever. So if you were already turned down before, try again because recent changes to the program are designed to help more homeowners no matter how far your home has fallen in value.

Why now?

While the program has been extended through the end of 2015, the time to act is now!
Interest rates on 30-year fixed mortgages have increased nearly a full percentage point since mid-May, and we do not expect them to return to the historic lows seen late last year and the first part of 2013.

However, mortgage interest rates are still comparatively low. Looking back to the mid-2000s, the average 30-year fixed interest rate was around 6 percent. Freddie Mac’s chief economist expects rates on the 30-year fixed rate mortgage to remain around 4.5 percent for the rest of the year.

Given that nearly half of the 30-year fixed rate mortgages owned or guaranteed by Freddie Mac or Fannie Mae have rates of 5 percent or greater, lots of homeowners stand to benefit from acting now.

Get started

More than 2.8 million families have already benefited from the program, and you could, too. If you are current on your payments and your mortgage is owned by Freddie Mac or Fannie Mae, get started now by following these steps:

1. Determine if Freddie Mac or Fannie Mae owns your loan.
2. Gather your financial information.
3. Contact us.
   Aundrea Beach-Greco :: Mortgage Advisor, CMP, CMPS :: NMLS 333739
   702-326-7866
   info@aundreabeach.com :: www.TailorMyMortgage.com

We are licensed in 28 states.  

Article provided from Tracy Hagen Mooney