RefiNow is a mortgage refinancing program created by Fannie Mae to help eligible homeowners reduce their monthly housing costs. It specifically targets those who may not qualify for traditional refinance options due to factors like credit score or income level.
Eligibility:
- The mortgage you're looking to refinance needs to be currently owned or guaranteed by Fannie Mae.
- Income limits apply (must be at or below 100% of the Area Median Income (AMI) for your location).
- Minimum credit score not required. No recent delinquencies on your current mortgage.
- Debt-to-income ratio (DTI) must be less than or equal to 65%.
- Refinancing a single-unit principal residence. Maximum loan-to-value (LTV) ratio limits apply (typically 95%).
Benefits:
- Reduced Interest Rate: RefiNow requires a minimum interest rate reduction of 50 basis points (0.5%) compared to your current mortgage, potentially leading to significant monthly savings.
- Lower Monthly Payment: The program aims to help you achieve a lower monthly payment, making home ownership more affordable.
- More Flexible Eligibility: Compared to traditional refinances, RefiNow offers broader eligibility with a focus on income and making homeownership more sustainable.
Considerations:
- Income Limits: You must meet the income limitations set for your area to qualify.
- No Minimum Credit Score: While a minimum credit score isn't required, other factors like credit history and debt may be considered.