New refinance options recently announced by Fannie Mae and Freddie Mac are geared to help eligible borrowers save approximately $1,200 to $3,000 per year on mortgage payments depending on their circumstance.
Available this August, Refi Possible by Freddie Mac and RefiNow, launched in June by Fannie Mae can help eligible borrowers refinance their mortgage if they make at or below 80 percent of their local region’s median annual income. Homeowners will likely save $50 to $250 per month as their mortgage rate is reduced by a half-percentage point or more.
Borrowers can also receive a $500 credit for an appraisal if one is obtained and additionally roll up to $5,000 in closing costs into their mortgage.
Homeowners will also have the opportunity to get the 50 basis point up-front “adverse market refinance fee” waived.
To qualify for Refi Possible or RefiNow, eligible homeowners must (at very least) have:
- A Freddie Mac or Fannie Mae-owned mortgage secured by a one-unit, single-family “primary” residence.
- No missed payments in the past six months, and no more than one missed payment over the previous 12 months.
- A loan-to-value ratio at or below 97 percent.
- A debt-to-income ratio below 65 percent.
- A minimum Indicator Score (Freddie Mac’s underwriting/credit reputation score) or FICO score (Fannie Mae) of 620 or higher.
- * Lenders must provide a savings of at least $50 in the borrower’s monthly mortgage payment, and at least a 50-basis point reduction (a half percent) in borrower’s interest rate.
- ** Details are forthcoming for potential homeowner refinance candidates who are in forbearance due to the COVID-19 pandemic.
Click here for a complete list of options and requirements by Freddie Mac, or click here for Fannie Mae’s. You can also help a member determine whether Freddie or Fannie own their mortgage by visiting Freddie’s Loan Look-Up Tool or Fannie’s Mortgage Loan Look-Up resource.
Discover if any of your members qualify by reaching out to them today!