Fannie Mae recently announced their new RefiNow program. RefiNow was created to give low to moderate-income borrowers an opportunity to take advantage of the historically low-interest-rate environment. This government-backed program helps more homeowners refinance their mortgages. It also expands eligibility to many borrowers who did not qualify for a refinance during the pandemic because of changes to their income or other hardships that they may have had to face. RefiNow could help them lower their monthly payments and allow them to save money.
Who qualifies for RefiNow
In order to be eligible for the RefiNow program, a New Hampshire homeowner must have a Fannie Mae-backed mortgage secured by a one-unit principal residence. In addition, RefiNow qualifications were expanded to allow for a debt to income ratio of 65% or less and a loan to value ratio of up to 97%. Credit score requirements have also become more flexible, allowing for a minimum credit score of 620. Lastly, homeowners need to 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 is it wise to do a RefiNow refinance?
New Hampshire homeowners who couldn’t secure a lower interest rate in the past should take advantage of a refinance’s cost-saving benefits. For example, if a homeowner lost their job or their income was reduced during the pandemic, they may be eligible for a refinance now. 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 they don’t have more than one missed mortgage payment in the past 12 months.
How can New Hampshire homeowners benefit from RefiNow?
- 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. Tom is well-versed in the program details and can review your existing mortgage to see if this opportunity will work for you.