Fannie Mae's New Refinance Option Available Beginning June 5
"Lower-income borrowers typically refinance at a slower pace than higher-income borrowers, potentially missing an opportunity to save on housing costs.
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
$50in the homeowner's monthly mortgage payment.
- Providing a
$500credit from Fannie Maeto 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 Maeotherwise charges to lenders on balances at or below $300,000.
To qualify for RefiNow, homeowners must have:
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);
- 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.
Statements from Fannie Mae Board Chairwoman
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