RefiNow

In coordination with Freddie Mac and under the guidance of FHFA, Fannie Mae is introducing the RefiNow refinance option that offers expanded eligibility that helps more borrowers take advantage of the current low interest rate environment.

Homeowner Benefits:

• Requires 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.
• Provides 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.
• Waives the 50 basis point up-front adverse market refinance fee that Fannie Mae otherwise charges to lenders on balances at or below $300,000.

Qualifications, Homeowner 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).
• No missed mortgage payments in the past six months, and no more than one missed mortgage payment in the past 12 months.
• 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.

Eligibility:

Freddie Mac and Fannie Mae have adopted a new refinance option for loans to borrowers with incomes at or below 80% of area median income and you may be eligible to take advantage of this program. If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under this refinance option.

You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:

• Freddie Mac Loan Look-Up Tool
• Fannie Mae Mortgage Loan Lookup