What is RefiNow?
Fannie Mae recently released their new RefiNow program. RefiNow is a government-backed program created to help low to moderate-income borrowers take advantage of the historically low-interest-rate environment. This program expands eligibility to help more homeowners refinance their mortgages. In addition, if homeowners were unable to qualify for a refinance during COVID due to reduced income or other reasons, this program might help them lower their monthly payments.
Who is eligible for RefiNow?
The RefiNow program is open to homeowners who qualify by having a Fannie Mae-backed mortgage secured by a one-unit, principal residence. RefiNow qualifications have been expanded to allow for a loan to value ratio of up to 97% and a debt to income ratio of 65% or less. RefiNow is more flexible with credit score requirements, allowing for a minimum credit score of 620. Homeowners must have an income at or below 80% of the AMI (Area Median Income) to be eligible. Here is the AMI Lookup tool to see if you qualify.
Why should I do a RefiNow refinance?
This program will allow homeowners who could not secure a lower interest rate in the past to take advantage of the money-saving benefits of refinancing. For example, homeowners who might have lost income or jobs during COVID or missed a mortgage payment may now be eligible to refinance. Borrowers with loan balances less than $300,000 can also save money on fees and closing costs. In addition, more low to moderate-income borrowers will now qualify to refinance provided they have not missed a mortgage payment in the past six months and no more than one missed mortgage payment in the past 12 months.
How does RefiNow help homeowners?
- Reduce interest rate
- Reduce closing costs
- Save on fees if the loan balance is $300,000 or less
- Allows for a minimum credit score of 620
- Participate with higher debt or lower credit score
- More flexibility
- More homeowners will qualify
Mortgage Equity Partners and Fannie Mae share a mission to help support all borrowers by offering home financing options that support sustainable homeownership. RefiNow is an option that will expand eligibility to millions of homeowners who want to take advantage of the current low-interest-rate environment. Our loan officers are well versed in the program details and can review your existing mortgage to see if this opportunity will work for you.