Refinance Your Home with RefiNow™

Fannie Mae (FNMA) recently announced a new RefiNow™ program, which provides lower-income homeowners the opportunity to refinance and take advantage of today’s historically low interest rates! The RefiNow™ program is specifically designed for borrowers who want to obtain the benefits of current interest rates but who otherwise may not qualify to refinance due to FNMA guidelines regarding a person’s debt-to-income ratio.

Program Requirements

Initial requirements of the program are that FNMA must be the investor on the current mortgage loan and that the borrowers' income must be below 80% of their respective Area Median Income (AMI).

Another major requirement is that our mortgage lenders will have to compare your current mortgage rate and the current principal/interest payment versus what the new proposed rates/terms will be. Overall, this new principal/interest payment must be a minimum of $50 per month lower. That means homeowners will save at least $600 a year when refinancing their current FNMA mortgage loan through the RefiNow™ program.

Other factors that borrowers will need to consider are the following:

Occupancy

With RefiNow™, a new loan must be secured by a person’s primary residence.

Payment History

The current mortgage cannot have any 30-day late payments in the past six months. Also, in the previous 12 months, you cannot have any more than one 30-day late payment.

Identical Borrowers

With this program, you must make sure all the borrowers on the current loan are the same borrowers on the new loan. This program cannot be utilized when a borrower wants to refinance due to a divorce or separation.

Debt-to-Income Ratio

The maximum allowed debt-to-income (DTI) ratio is 65%. This ratio means that your monthly outgoing debts (including your new house payment, car loans, minimum payments on credit cards, child support, etc.) cannot exceed 65% of your gross monthly income.

With today’s rates lower than they have been in previous years, this is a great time to consider the benefits of refinancing your existing home loan!

Ready to RefiNow™? Let us help!

At Town and Country Bank and Peoples Prosperity Bank, our mortgage lenders are here to assist with all of your refinancing and home buying needs.

If you believe that you would benefit from Fannie Mae’s RefiNow™ program or are curious to learn more, connect with one of our experienced mortgage lenders today! We are ready to help you receive the best possible interest rate for your loan and save you money in the process. Contact us or visit one of our 12 branch locations so we can assist you with getting started!