The Fannie Mae Refi Now Program Benefits Low-Income Borrowers
It’s a well-known fact that low-income homeowners tend to shy away from refinancing options. The idea might sound appealing, but it might also appear complicated, with up-front costs that aren’t feasible for those living paycheck to paycheck.
If you fall into this category, it’s time to put refinancing on your radar. The Federal Housing Finance Agency recently rolled out Fannie Mae RefiNow, a new program that puts lower interest rates and reduced mortgage payments in the hands of low-income homeowners.
What is Refinancing?
When you refinance your home loan, you are replacing your current mortgage with a new one. You might ask, what’s the point? Since loan terms and features are constantly changing, refinancing allows borrowers to obtain a more attractive mortgage in the future. This could save thousands of dollars over the life of a home loan.
Qualifying for the Fannie Mae ReFi Now Program
If you’re interested in refinancing your home loan through the Fannie Mae ReFi Now program, your first step is to determine if you qualify. Homeowners must meet the following conditions to be eligible:
- Their current mortgage must be backed by Fannie Mae.
- The mortgage must apply to a single-unit, primary residence.
- The borrower’s current income must be at or below 80% of the area median income.
- The borrower must have made all mortgage payments in the past six months and have a maximum of one missed payment over the past year.
- The LTV can equal up to 97%.
- The DTI must be no more than 65%.
- The borrower’s FICO score must be at least 620.
At MortgageDepot, our experienced loan officers will take an in-depth look at your personal and financial situation to determine if this is the best path to reach your goals.
How Can the ReFi Now Program Help Me?
If you meet the qualifications, the ReFi Now program could take a significant amount of money off your monthly mortgage payment. Here is a look at the benefits that might be in store for you:
- A reduced interest rate, saving the average borrower $50 monthly.
- If an appraisal is conducted, the borrower will receive a $500 credit.
- The adverse market refinance charge is waived for loan balances of $300,000 or lower.
If you’ve caught the refinancing bug, talk to MortgageDepot today. We’ll help you determine if the FannieMae Refi Now program will put some money back in your pocket!
Contact one of our loan consultants to learn more.